Just confirmed with an anonymous EVP. Expectation is to eliminate or demote an 80% minimum of AVPs at Union Pacific. Rationale is that this is an unnecessary layer that adds cost and reduces agility and speed of the organization. Sad outcome for those Executives that have worked hard in their careers to advance. All part of a growing cost reduction strategy that originally aimed at 10% payroll reduction this year, but is now anticipated to be much higher.
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Lance is all about Lance. This is what happens when the Board hires a non-railroad CEO. That 55OR is all that matters.
Fake news
80% sounds about right, but I expect more demotions than terminations. Why cut a worthless layer of fat, when you can keep it around and make it twice as overpaid at a lower level and fire young talent instead. #UPWay
Executive level confirmed moving to two regions and absorbing 5 service units. Where do all of those folks go? Supers to DTS, DTS to MTO? Will they shift some to Omaha...ummmm Definitely but where do they go? Also confirmation from executive level, UP plans to cut 15,000 Jobs in the next five years. Safety department being dismantled. Losing or cutting top talent leaving behind the inept leadership we have had for years now. No confidence in the decisions being made anymore. Get out while you can! We miss you Mr. Young.
I’ve heard from an EVP that 10% is the goal, however it’s closer to 30% in some departments. An unconfirmed but logical Rumor is, managers who don’t manage people are probably gone or moved, director roles will be merged and reduced and more directors will report directly to EVPS, meaning less AVPS.
I don’t see that happening. UP has like 60 AVPs. Cutting all of them wouldn’t gain too much savings. These people don’t make $1m a year like some believe. It’s all in the stock options. And it would seriously reduce the drive of any current directors or senior directors that aspired to be AVP someday. During the last cut some AVPs were released and some took early retirement. I’m guessing that will happen here. But an overall house cleaning of AVPs is unlikely.
Time to jump ship. Even if they hit a 55 OR, what is next. . . . a 52 OR ? It is not going to end. Time to start my job search. Even 10 years ago UP was the 'golden ticket' for employment. Now it is just another shareholder driven entity that has no interest in it employees. We all miss Jim Young.
I too have heard that the first round is 10%. I know they are looking at eliminating the more seniors roles and no one is safe. Lance does not and has not ever cared. If anyone thinks they are safe- think again. Friday will be a difficult day.
Laying off AVPs should have been done long ago. I have worked with some great ones but I have worked with many who drain the morale, and do nothing but impede decision making and progress. I could name 4-5 right off the bat that should NOT have their job. I’m not saying they are completely worthless but they should NOT be in the positions that they are.
Lance has said, he is ok with doing “whatever” is necessary in order for UP to achieve a 55 OR. Folks, I have heard this for myself (Senior Level) and this is going to to be very , very ugly and Lance does not give a crud as long as be saves HIS JOB. OTHER EVP’s are also complicit with going about it this way; yes sir, yea sir, They are all trying to save themselves. If you think they are on your side, think again. They are all about saving their own a$$ and payout. If you di t have a payout, then that tells the story.
When is this to occur? And how does “demoting “ them save money exactly? And why do you believe all of a sudden it is more than 10%? This is all anonymous so you are in a safe place. Please do share. Thank you kindly.