(The following appeared on the KTBS website on May 7, 2009.)
SHREVEPORT, La. — Kansas City Southern railroad, which lost $7.5 million in the first quarter of this year as the struggling global economy reduced the size and number of railroad shipments, has furloughed some of the employees at its rail yard in Shreveport.
The layoffs are in the mechanical department, a company spokeswoman said today. She did not say how many people were affected, but employees at Shreveport said 33 people were furloughed.
No more layoffs are planned in Shreveport, KCS spokeswoman C. Doniele Kane said.
KCS is also transferring approximately 130 people from its customer solutions and network operations centers in Shreveport to its headquarters in Kansas City. Those moves are expected to be completed this summer.
KCS had profits of $32.9 million during the first quarter of last year.
The company said it was able to offset some of the decline with a 19 percent decrease in expenses — including lower fuel prices and deep cuts to insurance, employee costs, purchased services and other expenses.
The company said rail volumes were down 15 percent overall for its U.S. and Mexican operations as it recorded double-digit declines in each of its shipment categories, except for an increase for coal.