Passenger Trains > Reuters: Amtrak cutting 450 positions, $100 mil in annual costs

A report of official confirmation of the major terminations yesterday:


US railroad Amtrak cutting 450 positions, $100 million in annual costs
Reuters
By David Shepardson
May 7, 2025


WASHINGTON, May 7 (Reuters) - U.S. passenger railroad Amtrak said on Wednesday it is eliminating 450 positions as it aims to cut annual costs by $100 million as future support from Congress remains uncertain.

Amtrak said through a reduction-in-force process, and cutting of open positions, Amtrak has cut 450 roles that, combined with other recent cost cuts, "will help Amtrak save $100 million annually."

The changes come after the White House in March forced Amtrak CEO Stephen Gardner to step down after President Donald Trump sought the changes. Amtrak's board has not named a new CEO, but Amtrak President Roger Harris is currently running operations.

Full story:

https://www.reuters.com/business/world-at-work/us-railroad-amtrak-cutting-450-positions-100-million-annual-costs-2025-05-07/



Edited 2 time(s). Last edit at 05/07/25 19:35 by GenePoon.

I'm sure glad I'm retired. If the economy gets socked, there will be more people laid off than government, contract and quasi-government employees.

Victor Baird

Well let's see how this pans out, the biggest part on this was getting rid of Gardner, he really was intent on dismantling Amtrak just like Airline Boy was!

Was  om  BUILDER  20  days   ago.   1   ONE  server  in the  dining   car. And  she  expects  it  to  stay that  way all  summer.
NOT HIRING.  So  450  cuts  mean  less  service. Maintenance??

Google says Amtrak employs 22,000+ people--so, 450 job cuts isn't huge.

And these figures (450 jobs or $100M) will never be verified.  They're just a "Headline"

I've read elsewhere that these are all "management" positions.  I hope this is true.

The people shortages I worry about are those staff shortages on the AutoTrain--reported
here today on the Passenger Board. (Above)

Amtrak hired a LOT of planners to bolster up their expansion and development plans in the latter part of Gardner's years - that I think were all pie in the sky dreams to begin with. I've been hearing those are a large chunk of the "to go" list. Amtrak had been short staff in Beech Grove and onboard services, while they were getting a little fat in managerial headquarters under Gardner.......And to Amtrak's credit, they were trying to ramp up ops in what they were being promised in the Biden administration. I've seen onboard staff ADDED to trains over the past three years, compared to the draconian cuts that took place during COVID and just prior with the "Flexible Dining" program for eastern LD train sets. There's been and remains a bit of a step-up in service for the "Flexible Dining" on the Lake Shore Limited and the addition of a server. The Empire Builder on my recent trip had adequate help in the Diner in the way they run things there now. It's no longer every half hour sittings from 5 pm to 9:30 pm. Four sittings TOPS and they got that system down, especially with hardly any coach passengers coming using the Diner "like it used to be." 

ProAmtrak Wrote:
-------------------------------------------------------
> Well let's see how this pans out, the biggest part
> on this was getting rid of Gardner, he really was
> intent on dismantling Amtrak just like Airline Boy
> was!

Absolute nonsense conspiracy.

$220,000 per position if you do the math. That could work out to something like $150,000 salary and bonus plus 50% loading for benefits.

Without knowing how many open management positions Amtrak was carrying, it is tough to guess whether there will be much impact on operations, etc. 

Here is a link to the RPA release on the subject:

https://www.railpassengers.org/happening-now/news/releases/rail-passengers-statement-on-mass-firings-at-amtrak/

People's reactions to the RPA's comments will likely be a function of what they think of the RPA or the utility of Amtrak more generally.  What I thought was interesting was the observation that this reduction in force is  "... in response to pressure from the Trump Administration to achieve an operational profit in the next four years..."  

I have not otherwise heard of the administration's goal for an operational profit,  but, assuming the press release is accurate on this point,  this begins to sound like a kick -the- can- down -the -road approach.  

Magritte55 Wrote:
-------------------------------------------------------
> Here is a link to the RPA release on the subject:
>
> https://www.railpassengers.org/happening-now/news/
> releases/rail-passengers-statement-on-mass-firings
> -at-amtrak/
>
> People's reactions to the RPA's comments will
> likely be a function of what they think of the RPA
> or the utility of Amtrak more generally.  What I
> thought was interesting was the observation that
> this reduction in force is  "... in response to
> pressure from the Trump Administration to achieve
> an operational profit in the next four
> years..."  
>
> I have not otherwise heard of the administration's
> goal for an operational profit,  but, assuming
> the press release is accurate on this point, 
> this begins to sound like a kick -the- can- down
> -the -road approach.  

Kick the can down the road....another timeless government activity...

https://www.railpassengers.org/happening-now/news/blog/seriously-amtrak-what-were-you-thinking/

Another RPA release on the layoffs, quite a scathing critique of Amtrak's decision.

Lackawanna484 Wrote:
-------------------------------------------------------
> $220,000 per position if you do the math. That
> could work out to something like $150,000 salary
> and bonus plus 50% loading for benefits.
>
> Without knowing how many open management positions
> Amtrak was carrying, it is tough to guess whether
> there will be much impact on operations, etc. 

That's one heck of a nice package - $220K per position!!! I would say the base salary is more than $150K, as a 50% benefit rate is high all considering. Amtrak needs the skilled labor and managers to handle these capital and procurement projects, but I think they got a bit bloated in the process with money that should have been continually invested in onboard staff doing daily operations and renewing the equipment so we don't have more Horizon debacles. Lets not even talk about the new Acelas. Would love to have a round table with the managers on THAT project! 

AmtrakMidwest Wrote:
-------------------------------------------------------
> ProAmtrak Wrote:
> --------------------------------------------------
> -----
> > Well let's see how this pans out, the biggest
> part
> > on this was getting rid of Gardner, he really
> was
> > intent on dismantling Amtrak just like Airline
> Boy
> > was!
>
> Absolute nonsense conspiracy.

You sure about that? All he did was copy what Airline Boy did and how come he got all his bounuses every winter!

Magritte55 Wrote:
-------------------------------------------------------
> https://www.railpassengers.org/happening-now/news/
> blog/seriously-amtrak-what-were-you-thinking/
>
> Another RPA release on the layoffs, quite a
> scathing critique of Amtrak's decision.

Is it finally dawning on RPA Staff that Amtrak is run by incompetent, feckless fools ? 

joemvcnj Wrote:
-------------------------------------------------------
> Magritte55 Wrote:
> --------------------------------------------------
> -----
> >
> https://www.railpassengers.org/happening-now/news/
>
> > blog/seriously-amtrak-what-were-you-thinking/
> >
> > Another RPA release on the layoffs, quite a
> > scathing critique of Amtrak's decision.
>
> Is it finally dawning on RPA Staff that Amtrak is
> run by incompetent, feckless fools ? 

Too little too late!

ProAmtrak Wrote:
-------------------------------------------------------
> AmtrakMidwest Wrote:
> --------------------------------------------------
> -----
> > ProAmtrak Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > Well let's see how this pans out, the biggest
> > part
> > > on this was getting rid of Gardner, he really
> > was
> > > intent on dismantling Amtrak just like
> Airline
> > Boy
> > > was!
> >
> > Absolute nonsense conspiracy.
>
> You sure about that? All he did was copy what
> Airline Boy did and how come he got all his
> bounuses every winter!

Pretty hard to dismantle Amtrak when ridership rose every year with him in charge. Someone with actual railroad experience but instead now they have another airline executive in charge. It’s impossible to please people like you.

jp1822 Wrote:
-------------------------------------------------------

>
> That's one heck of a nice package - $220K per
> position!!! I would say the base salary is more
> than $150K, as a 50% benefit rate is high all
> considering. Amtrak needs the skilled labor and
> managers to handle these capital and procurement
> projects, but I think they got a bit bloated in
> the process with money that should have been
> continually invested in onboard staff doing daily
> operations and renewing the equipment so we don't
> have more Horizon debacles. Lets not even talk
> about the new Acelas. Would love to have a round
> table with the managers on THAT project! 

Given the various projects Amtrak has underway and in planning, hiring a lot of architects, civil engineers, electrical engineers, etc is pretty likely. These folks are in demand, and command a high salary / package.

Given Amtrak's demonstrated inability to manage costs, assure quality control, etc  I hope their cuts didn't fall heavily on the contract analysts and reviewers, OIG team etc who are supposed to be keeping an eye on the work and the $

Lackawanna484 Wrote:
-------------------------------------------------------
> jp1822 Wrote:
> --------------------------------------------------
> -----
>
> >
> > That's one heck of a nice package - $220K per
> > position!!! I would say the base salary is more
> > than $150K, as a 50% benefit rate is high all
> > considering. Amtrak needs the skilled labor and
> > managers to handle these capital and
> procurement
> > projects, but I think they got a bit bloated in
> > the process with money that should have been
> > continually invested in onboard staff doing
> daily
> > operations and renewing the equipment so we
> don't
> > have more Horizon debacles. Lets not even talk
> > about the new Acelas. Would love to have a
> round
> > table with the managers on THAT project! 
>
> Given the various projects Amtrak has underway and
> in planning, hiring a lot of architects, civil
> engineers, electrical engineers, etc is pretty
> likely. These folks are in demand, and command a
> high salary / package.
>
> Given Amtrak's demonstrated inability to manage
> costs, assure quality control, etc  I hope their
> cuts didn't fall heavily on the contract analysts
> and reviewers, OIG team etc who are supposed to be
> keeping an eye on the work and the $

Agreed!