(The following article by Gregory Richards was posted on the Florida Times-Union website on March 24.)
JACKSONVILLE, Fla. — CSX Corp.’s third wave of layoffs began Tuesday and continues today, part of a management restructuring plan announced in November to slash 800-1,000 non-union jobs.
The intent is to make CSX, which operates the country’s third largest railroad, a more nimble and efficient competitor.
The Jacksonville-based company would not reveal how many or what type of jobs will be lost this round. However, only about 140 positions have been eliminated since last fall. The process is expected to end by April, suggesting this stage of cuts will be sizeable as the reorganization hits the wider swath of employees in middle management.
CSX spokesman Adam Hollingsworth confirmed that while a small number of positions were eliminated Tuesday, the “majority of conversations” with employees regarding their future employment with CSX will happen today. He would not give additional details.
“I don’t think it would be appropriate to discuss the issue any further until those conversations have been completed,” Hollingsworth said.
Workers were informed by e-mail Tuesday that the third phase of cuts had begun. Affected employees will have one-on-one meetings with their supervisors.
The restructuring began in December when 20 senior vice presidents and vice presidents were let go. Last month, 120 positions — largely assistant vice presidents and directors — were eliminated.
The streamlined workforce is expected to save CSX $80 million to $100 million annually. Management layers are being reduced from 11 to eight.
Last year, CSX had the worst operating ratio, an industry measure of profitability, of any of the country’s four largest freight railroads, according to financial documents.
Beginning at the top of the 24-year-old company’s management, the transformation requires each management layer to redesign the layer underneath. The process both eliminates and creates positions, the company has said.