Thread regarding Union Pacific Corp. layoffs

A few numbers worth pondering

When UP2020 was rolled out, one of the stated goals was a 30% overall reduction in the UP workforce. Using the 2018 starting workforce number of 41,500, this equates to a final workforce of 29,050 employees. That is a net loss of 12,450 jobs company-wide, meaning that UP is about 1/3 of the way to their reduction goal.

It is safe to say that the bleeding has only just begun, because the only way for UP to reach their stated goal on their stated timeline is to layoff workers in larger numbers and more frequently. Their current strategy of making many small cuts isn't going to deliver the numbers that they want when they want them.

Everyone working at UP who isn't sitting in the C-suite should begin actively looking for another job if they aren't already, because if they aren't sitting there, they have (at best) a 2/3 chance of keeping their current job.

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Post ID: @OP+11DmScJf

11 replies (most recent on top)

As posted before, they're going to cut until they nick an artery and bleed out. When that happens, Fritz and Vena will walk away with millions. Anyone that might be left will be responsible for turning the company around.

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Post ID: @bte+11DmScJf

@fkw they are already starting to contract out departments. MoW has zero job protections and are already seeing it. So are Supply, Facilities, Car, Intermodal. UP has facilities everywhere that they own but are 100% contracted. Contracting may not always be cheaper but it reduces headcount and some liability.

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Post ID: @app+11DmScJf

About half as many as autonomous with no crew.

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Post ID: @wfv+11DmScJf

If you take at look at CN and CP who have both gone through this process I think you get a good idea of where the remaining cuts would be coming from. Both CN and CP cut management to the bone. Just look at what Hunter did when he took over the CSX he cleaned out the Headquarters.

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Post ID: @ann+11DmScJf

@fkw: That's a good point. Contractors (in any industry) are rarely a more cost-efficient option, at least if anyone is looking beyond quarterly labor expenditures. In many instances, such as for specialized repair and maintainence work, they could end up costing the company even more money for the services rendered over the long term.

One problem among many with UP seems to be that nobody with any real power is thinking much further ahead than the next fiscal year. For a company with such a large and expansive infrastructure that makes up a major component of a critical sector of the US economy, such short-sightedness will likely prove disastrous.

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Post ID: @kav+11DmScJf

They want to make things more efficient and save money. Contracting out will not make thing efficient, however it may reduce risk but I don’t think reducing risk is what they are after. If they contracted out all the locomotive maintenance, how many Electricians or contractors are available or capable of troubleshooting or fixing Locomotives or PTC problems that are not already working? Easy on the grammar Pirates ! I am a machinist

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Post ID: @fkw+11DmScJf

I could see them contracting out all the mechanical work. Also how many jobs are gonna be lost to 1 man train crews.

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Post ID: @fwu+11DmScJf

@wug -They want to contract out the work 100%. (Scabs are picket line crossers even though it sounds better) Wait until this round of contract negotiations. They are going to go for the jugular. I’ll bet we lose almost all of our job and work rule protections that deal with employee numbers.
Op- I think they are already more more than 33% there because there was a sizable reduction in 2017 as well.

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Post ID: @oer+11DmScJf

@oeg.... no I think you misunderstood what I was saying. Try reading it again.

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Post ID: @vvg+11DmScJf

@wug: that isn't what the OP said. The post says they are 1/3 of the way to their goal of cutting 30% of the total workforce company-wide. The numbers all are broken down in plain form. Try reading the post again.

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Post ID: @oeg+11DmScJf

If they cut another 2/3 of their workforce, they're gonna have to scab out the work or there won't be enough employees to keep up. Ain't happening period.

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Post ID: @wug+11DmScJf

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