ATLANTA — Norfolk Southern told employees today that it will eliminate 7% of its management and staff positions as a cost-cutting move.
The railroad is set to publicly announce the cutbacks during its fourth-quarter earnings call on Friday morning. NS is offering voluntary severance packages to eligible employees, according to people familiar with the matter. Roughly 300 positions will be eliminated.
Norfolk Southern’s earnings have taken a hit from inflation, a soft freight market, and costs related to cleanup of the Feb. 3, 2023, derailment and hazardous materials spill in East Palestine, Ohio.
The railroad is maintaining its commitment to not furloughing train crews during downturns, however, as part of its strategy to provide more consistent, reliable, and resilient service over the long term, according to people familiar with the matter.
A Norfolk Southern spokesman declined to comment.
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