Posted on 11/11/2003 7:13:01 PM PST by Willie Green
For education and discussion only. Not for commercial use.
JACKSONVILLE, Fla. -- CSX Corp. announced Monday it will cut 800 to 1,000 nonunion employees over the next six months, as part of a plan to streamline its management structure and to create a smaller organization.
The railroad said the layoffs will cost $60 million to $80 million, which will be recognized over the next two quarters. The company said it expects to fully realize the effect of the savings by the middle of 2004.
The company is streamlining its management structure from 11 layers to no more than eight.
The cuts will be made over the next six months, and no positions were eliminated Monday.
"It will be a time of some consternation by our employees, but we've asked them to focus on the jobs at hand," said CSX spokesman Gary Sease
The company did not say which regions would be most effected. About 3,000 of the company's 5,000 nonunion employees are based in Jacksonville, Sease said. CSX has 34,000 employees and its rails cross 23 states.
"We will put managers and decisions closer to our customers, increase accountability at every level and establish a far more competitive cost structure," Michael J. Ward, the company's chairman, president and chief executive, said in a statement.
In the third quarter, CSX reported a loss of $103 million, or 48 cents a share, after recording more than $200 million in charges to change the way it estimates injury liabilities and to settle a dispute related to a 1999 sale of international container shipping assets.
CSX stock fell 45 cents Monday to close at $33.35 on the New York Stock Exchange Monday.
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