Maybe I’m no expert on the subject and I agree that they had the right to “cut off some fat” is some corners of the company, but laying off to this extent will trim the operating capabilities. It’s not like we are a tech company and we can automate some processes to a degree that fewer workers are needed. We are a railroad company, and railroading requires a precise system of operations that lead to the ending result (profit). With this, I just see cutting off the operational capabilities of the company.
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Many years ago, when Clinton gutted the military, the Air Force leadership spouted “Do more with less”. They later came out and said, You can’t do more with less. The laws of physics have proven that you ultimately just end up doing less with less.
TLDR
If you haven't figured it out yet, PSR is a complete lie. They "speed up" delivery by eliminating the smaller/less valuable clients. Then when the freight doesn't get delivered on time they apologize. If the customer complains they too get eliminated. They create fake measuring systems so their numbers never match the actual numbers. Its 100% market manipulation. In conclusion: PRS is the modern day Ponzi Scheme on a scale never seen before. And I can't wait to watch these mo--ns burn at the stake for it soon enough.
Ive never understood the bizarre fleet management program. Constantly purchasing new power, yet storing older but servicable power yet all around the network, we struggle to meet tonnage and tpa requirements. Unless taking a lease or writedown is that advantageous, we sure never had power when we needed it. Yet we had so many locomotives die otr.
You just need to work twice as hard. The shareholders need you.
I’m still trying to figure out how fewer people spending less time working on a locomotive means we’ll have increased reliability due to being able to “focus” on that power...to paraphrase Vena. I think in the short term, it’ll look like reliability goes up due to putting problem locomotives in storage, but eventually the miles will catch up to the “better” power, and reliability will start deteriorating again. By then, the profits will have been reaped, and it’ll be on the next leadership team to try and salvage UP.
It has to work or they'll shut your location down.
The problem is it is some of the people with the ability to make cuts that need to be cut to save money. Do you really think the regions need both a Rvp and a Avp? Everybody wants to cut jobs except their own. This company is very top heavy. Besides that, everybody no matter what department you’re in, knows someone in some position that you’re not sure exactly what in the heck they do. Maybe they are counting the days till retirement. Maybe it is just someone that knows somebody. Either way, somehow this position never gets cut but you’ll have lower level managers working themselves to death due to shortage of staff.
Leadership in the C-levels are greater incentivised to increase value in the short term and to do that you liquidate what you can (human capital) reduce costs every where (downsize, warehouse, sell off equipment) focus on primary accounts not the secondary, use those "newly created funds" to secure loans to artificially inflate stock activity as much as you can (stock buy backs).
The results are undeniable stock growth under your reign that only can further increase the value of stocks you given each year over the years. Like the C levels of Canadian National you leave the company for greener pastures to go do it again at new Railroads, leaving all the sacrifices of human capital, assets and market share loss for others to deal with ultimately. On paper you appear a mover and a shaker, stock valuation sored under your guidance and you are the new hot commodity. Mitt Romney, Carla Fiorina, Hunter Harrison or Jim Vena.
The exec's will take the money and run. If you wear a suit and tie ,its all good
Look back at history. Industries continue to evolve and use less humans and more technology. Ask yourself what does a through freight conductor in ptc/fuel program territory do? Optimal conditions considered(no work events) etc. UP will subtract when needed and add back if needed. Trains are more efficient now than even 5 years ago. Sad but true. I got nine years left and hope to make it.
Make the UP great again!!!
They are not worried about long term...
They cant and wont. Up management is far too stupid to understand what is going on down on the ground. They'll continue to run everything into the ground until the Feds get involved.