FORT WORTH, Texas — BNSF Railway eliminated several hundred management positions at its headquarters and across the system last week as part of a belt-tightening move.
The railroad did not disclose how many jobs were affected, but people familiar with the matter say that BNSF cut 8% of its management workforce. That would translate into roughly 400 positions based on the January employment figures the railroad reported to the Surface Transportation Board.
“As a business tied to the industrial and consumer economies, we must always adapt our resources to meet demand. The freight market faced significant headwinds last year and our outlook for 2024 remains uncertain, as it does for many of our customers,” the railroad said in a statement. “To ensure our long-term success, it is necessary to make workforce decisions that respond to a complex and ever-changing freight environment. While these decisions are never easy, we must position ourselves to continue providing the industry-leading service our customers expect.”
The cutbacks come less than two weeks after Warren Buffett, chairman of BNSF parent Berkshire Hathaway, said the railroad’s 14% earnings decline in 2023 was deeper than expected. The railway’s operating ratio increased 2.5 points to 68.4% last year, which lagged the other five big systems.
“Though BNSF carries more freight and spends more on capital expenditures than any of the five other major North American railroads, its profit margins have slipped relative to all five since our purchase. I believe that our vast service territory is second to none and that therefore our margin comparisons can and should improve,” Buffett wrote in his annual letter to shareholders.
BNSF furloughed 362 mechanical workers across the system earlier this month, according to a union tally. Those workers were offered positions at BNSF shops that are currently hiring.
BNSF is not the only railroad to reduce its workforce in recent months.
Norfolk Southern in January said it would eliminate 7% of its management and staff positions through a voluntary severance program. The cutbacks were intended to offset hiring in the operating department, including new mechanical jobs, and came amid pressure from an activist investor.
Union Pacific in November reduced its management workforce by nearly 5% in what it said was a bid to speed decision-making.
Share this article
