Eastern Railroad Discussion > CSX to Cut Up to 1,000 Jobs

I just found this at Yahoo Finance.com

FDFrisch


Reuters
CSX to Cut Up to 1,000 Jobs
Monday November 10, 3:17 pm ET


NEW YORK (Reuters) - CSX Corp. (NYSE:CSX - News), the largest railroad in the eastern United States, on Monday said it plans to eliminate 800 to 1,000 non-union jobs in the next six months to cut costs and boost efficiency, productivity and operating profit.
The Jacksonville, Florida-based company also said it will streamline management, reducing the number of layers to no more than eight from 11. CSX said it employs about 34,000 people.

CSX said it expects the changes to cost between $60 million and $80 million, most of which will be recognized over the next two quarters. It said savings should be fully realized by the middle of 2004.

CSX shares traded Monday afternoon on the New York Stock Exchange (News - Websites) at $33.35, down 45 cents.

Press Release Source: CSX Corporation

CSX Corporation Announces Streamlining Of Management Structure; Changes Speed of Decision Making, Improves Productivity
Monday November 10, 3:00 pm ET

JACKSONVILLE, Fla., Nov. 10 /PRNewswire-FirstCall/ -- CSX Corporation (NYSE: CSX - News) announced today that it will be streamlining the management structure at a number of its companies, eliminating organizational layers and realigning certain functions. This effort will allow CSX companies to more effectively serve customers, meet revenue growth goals and improve productivity.
"Our goal is to create smaller, more responsive and streamlined organizations focused on driving operating income up and better realizing our full potential. This effort will allow us to deliver stronger results more quickly," said Michael J. Ward, CSX's chairman, president and chief executive officer.

The process now underway is the result of an organizational assessment focused on management efficiency and processes, clarity of roles and responsibilities and departmental structure. The streamlining will reduce management layers from 11 to no more than eight and increase the number of direct reports for many managers.

This streamlining will also reduce the non-union workforce by 800 to 1,000 people. No positions were eliminated today. Those reductions will be made over the next six months through a structured process, one layer at a time, beginning at the top of each organization. Outplacement services and benefits will be provided to those who do not have a place in the redesigned organization. The estimated cost of the program is expected to be in the range of $60 million to $80 million, most of which will be recognized over the next two quarters. The full effect of the savings will be realized mid next year.

"Despite tremendous successes in growing our revenue over the past three years, I am not satisfied with our efforts to control costs and improve productivity. The initiative announced today will result in broad changes in the way we do business," Ward said.

Ward continued, "We will put managers and decisions closer to our customers, increase accountability at every level and establish a far more competitive cost structure. Throughout this effort, we will use a thoughtful and disciplined approach that respects the dignity and contributions of all our employees."

CSX Corporation, based in Jacksonville, Fla. owns one of the largest rail networks in the United States. CSX Transportation Inc., and its 34,000 employees provide rail transportation services over a 23,000 route-mile network in 23 states, the District of Columbia and two Canadian provinces. CSX Corporation also provides intermodal and global container terminal operations through other subsidiaries.

This press release and other statements by the Company contain forward- looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, cost-savings, expenses, or other financial items; statements of management's plans, strategies and objectives for future operation, and management's expectations as to future performance and operations and the time by which objectives will be achieved; statements concerning proposed new products and services; and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "project," and similar expressions. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement. If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements.

Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by these forward- looking statements include, among others: (i) the Company's success in implementing its financial and operational initiatives, (ii) changes in domestic or international economic or business conditions, including those affecting the rail industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; and (iv) the outcome of claims and litigation involving or affecting the Company. Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's SEC reports, accessible on the SEC's website at www.sec.gov and the Company's website at www.csx.com.

Armor yellow and "Wings" can't be too far away.

atsfwarbonnet Wrote:
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> Armor yellow and "Wings" can't be too far away.

This has been said since atleast 1991, it hasn't happened yet.

atsfwarbonnet Wrote:
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> Armor yellow and "Wings" can't be too far away.


Armor yellow? I've never seen yellow armor. What's this?

(C'mon, all you guys who refer to UP this way, the color was named after the hue employed on reefer cars owned by the Armour meat-packing company. With a U.)

I hope they start right at the very top and work their way down.

And practice saying "Fries with that, sir"?

Again, another corporate moron move. Yes, they will create the appearance of better margins, blah, blah, blah. I have never seen a company that cut its way to true prosperity. If these guys would learn how to run a railroad and quit playing with accounting measures 24/7, then they'd be rolling in the dough. So instead, we have to read another announcement directed at Wall Street, and continue to wait for someone who is a real railroader to start RUNNING THE DAMN RAILROAD!

never will happen buddy...

You never become a growth industry or company by cutting. If they have 1,000 too many employees, then fire the ding bat who overhired to begin with. It is the role of management to support the employees, not the employees to support management. And for starters, start cutting at the very top...........

dash9cw Wrote:
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> You never become a growth industry or company by
> cutting.


Railroads haven't been a growth industry since 1915. Wake up!

BobE

I just wish CP Rail would clean out some of the middle management at the local terminal levels such as road managers, "health and safety" managers, and some of the so called "OM's" in Calgary too. Unfortunately the only people CP has cut this year have been Yardmasters, which train crews and yard operations need very much so now more than ever!

BS like this is usually followed by "empowering the associates" and other Dilbertian buzzwords.
The only way to tell for sure is to check the parking lots and see if there are a lot of lugnuts laying around!


ge13031: cryptic but concise

GE13031 Wrote:
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> BS like this is usually followed by "empowering
> the associates" and other Dilbertian buzzwords.



The employees currently whine about their being too many managers. Next, they will whine about their being too few managers.

BobE, worker bee

I think it would be a novel idea for CSX to take those 80-100 million dollars in savings, and invest it back into the railroad someplace. That could hire 1000 new track workers, and that's if they pay them 80,000 a year! Pay them $40-50,000 a year, and that's 2000 new MOW guys. Can you imagine the impact 2000 new Track Department guys could have on the deplorable condition of the physical plant? I bet that would make 'farmer' happy!

But I'm dreaming, that 80-100 in savings isn't going anywhere near to coming back into the company. Its going to make the balance sheet good, so the stock on the Street goes up a couple of pennies. Whoopty freaking doo. Stocks going to take a big hit when they can't get trains over the road anymore.

Practice Safe CSX

SLR62 Wrote:
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> never will happen buddy...


Really? Why won't it happen?

I don't understand why CSX workers do not pressure CSX to fix their tracks, Heck if every worker were to threaten to walk off the job, and CSX lost all their workers for awhile. I think they would get a clue then that no one wants to work for a railroad with crappy tracks.

The Railroad Company is only as good as their tracks. How else does a train get from Point A to point B.

If I were an employee I'd go to the FRA... With all the others unhappy about their bad tracks to get this done.. But then again.. That is just me.

Dana C. L.
"DNatureofDTrain"

DNatureofDTrain Wrote:
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> I don't understand why CSX workers do not pressure
> CSX to fix their tracks, Heck if every worker were
> to threaten to walk off the job, and CSX lost all
> their workers for awhile. I think they would get a
> clue then that no one wants to work for a railroad
> with crappy tracks.
>
> The Railroad Company is only as good as their
> tracks. How else does a train get from Point A to
> point B.
>
> If I were an employee I'd go to the FRA... With
> all the others unhappy about their bad tracks to
> get this done.. But then again.. That is just me.
>
>
> Dana C. L.
> "DNatureofDTrain"
Most of them can't just give up their income.
If they walked off the job the goverment would force them to go back to work.
As bad as CSX track is it still meets FRA standards so that would also do nothing.

"> BS like this is usually followed by "empowering
> the associates" and other Dilbertian buzzwords."

To which Mr Oligharchy responds:

"The employees currently whine about their being too many managers. Next, they will whine about their being too few managers."

My, aren't we condescending. I guess the "Dilbertian Buzzwords" reference hit too close to home? The Korporate world's penchant for buzzword oriented machinations are by now legendary. The presence of it in everyday humor merely underscrores it.

So, I guess John Snow will have to trim his *phony* recovery outlook, eh? Kinda funny when the con-man on top has his former company go against the grain.

Stock up the wood, guys, it's gonna be a cold winter.