CSX sticks with plan to cut jobs, reduce trains

[hexola]

https://www.reuters.com/article/us-csx-investors/csx-sticks-with-plan-to-cut-jobs-reduce-trains-idUSKCN1GD4IH

(Reuters) - U.S. railroad operator CSX Corp said on Thursday it would stick with a plan started by former Chief Executive Hunter Harrison, who died in December, to boost profit through cutting jobs and rail cars, and would also slash capital spending.

CSX reaffirmed it would lower its operating ratio - a closely tracked measure of operating expenses as a percentage of revenue – to 60 percent by 2020 from 67.9 percent at year-end 2017.

The Jacksonville, Florida-based railroad, the third-largest in the United States, said it would reduce its workforce by an estimated 2,200 jobs by the end of 2018 and a further 4,000 in 2020 through cuts and attrition.

It plans to cut the number of locomotives by up to 20 percent by 2020, while also reducing the number of rail cars it uses by more than 20 percent.

[democratisphere]

1. The workers and the paying customers are always sacrificed for increased value to the

wealthiest investors.

[Angry Dragon]

2. Good thing they got their tax cuts

[ProfessorGAC]

3. The Reduction In Cars and Locomotives. . .

. . .seems to be to reduce supply in an already fairly tight market which makes shipping costs go up.

IOW, the strategy to make more money involves getting rid of workers and forcing everyone else to pay more for everything they do.

[Vinca]

4. Isn't this the Sears plan?

No workers, no trains, no passengers, no money.

[hexola]

5. This is an interesting bit about CSX efforts in Mexico

Not sure related - but the company is reorganizing - perhaps focusing on these routes.

https://www.csx.com/index.cfm/customers/csx-collaborates-with-cross-border-customers/

Top goods imported to Mexico from the U.S. include inputs such as metal coils, rebar and other construction and manufacturing goods, along with minerals, such as clay, which is a main component for the manufacturing of tile and toilets, paper products to create cardboard for the finished goods manufactured in Mexico, and chemicals needed to manufacture plastics. Top exports from Mexico to the U.S. include beer, home furnishings, finished automobiles and appliances such as ranges, refrigerators and washers and dryers.

“Trade between the U.S. and Mexico is at an all-time high,“ said Rodrigo Garcia Del Rio, regional sales director, Latin America. “As businesses continue to grow on both sides of the border, developing a competitive advantage is important. Through our partnerships with other Class 1 railroads, CSX is able to deliver a seamless cross-border rail solution, providing shippers an efficient and consistent way to move goods between manufacturing sites and distribution points. Our expertise in-market is a built-in competitive advantage for our customers looking to do business between the US and Mexico. ”

[WhiskeyGrinder]

6. EHH's legacy of pain lives on after his death.