GREENBRIER LAYS OFF 500
The Greenbrier Cos. Inc. said Thursday it has laid off about 500 workers, or about 10 percent of its work force, from its Trenton, Nova Scotia, plant due to a fallen demand for railcars in the North American market.
The Lake Oswego, Ore.-based railcar manufacturer has also implemented a program to cut administrative spending by 10 percent a year.
“We are committed to reduce general, sales and administrative spending by approximately $5 million annually through very specific cost reductions,” said William A. Furman, president and chief executive officer of Greenbrier. “We have reduced administrative head count, closed a major regional office in San Francisco and reduced the size of other regional offices.”
Greenbrier said 1999 North American freight car orders dropped more than 50 percent, from 86,000 in 1998 to 41,000 in 1999. Industry projections indicate that the slump in orders will continue through 2000.
A sharp improvement in European orders is expected to offset the North American slump by the fourth quarter, Greenbrier said.