Union Pacific announces plans to cut around 700 jobs
- By Chrissy Suttles, Wyoming Tribune Eagle Oct 26, 2018. (Click on her name to read the story)
CHEYENNE / October 26, 2018 – Union Pacific Corp. announced plans to eliminate 475 employees and 200 contract positions by the end of the year, but it’s still unknown which regions may see cuts. Officials at the company’s headquarters declined to say how many of these jobs, if any, would be eliminated in Cheyenne or Wyoming, but the railroad expects more job cuts over the next two years. The Omaha, Nebraska-based enterprise hopes to cut costs after years of performance issues and congestion have stifled profits.
The company will reduce 30 percent of general and administrative expenses by 2020, having already cut thousands of jobs in recent years. “These cuts to our general and administrative structure typically do not affect those on the ground,” said Kristen South, Union Pacific public relations representative. “Usually, these are not the people moving or working on the trains.”In results released Thursday, Union Pacific announced a 33 percent improvement in third-quarter profits, earning $1.6 billion – higher than its $1.2 billion during the same time last year.
There were more than 1,000 Wyoming residents employed by Union Pacific last year, according to its website, and the company continues to be important to the state economy. Wyoming is a top mineral producer, which is heavily supported by the railroad.“Cheyenne is a well-known railroad town, and any substantial layoffs or restructuring could have an impact on its economy,” said Mary Clark, a Denver-based economist. “I wouldn’t say Wyoming would be a first priority for cuts because of its mineral industry, though.”
As a result of the restructuring, Union Pacific will consolidate operations from three regions to two, and eliminate five service units, including Denver. South said this change would likely only affect managers. “They may be absorbed into larger territories or let go, depending on our needs,” she said. “We don’t see this affecting Cheyenne’s daily operations.”
The railroad employs about 42,000 people and operates 32,000 miles in 23 states, according to its website.
My view point & speculation
These layoffs should have no effect on the Union Pacific Heritage Program at Cheyenne. With all the special events planned for 2019. I feel that Ed Dickens and The UP Steam Shop Crew, will survive these company wide layoffs. Union Pacific Railroad has a commitment to railroad history and the Transcontinental Railroad Sesquicentennial - Golden Spike Ceremony for May 10, 2019.
What do you think?
Gary: Rail-fan
