NORFOLK SOUTHERN STARTS COST-CUTTING PLAN
Norfolk Southern Corp. said Tuesday it will undergo a restructuring designed to cut costs and improve financial performance.
Norfolk, Va.-based NS said it will:
* Cut 1,000 to 2,000 employees over the next 12 months.
* Dispose of 12,000 surplus freight cars.
* Undergo a line rationalization program targeting 3,000 to 4,000 underused or duplicate track miles over the next two years.
* Consolidate or dispose of up to 10 underused or redundant facilities.
* Redesign NS's service network with the assistance of MultiModal Applied Systems, a railroad consulting firm.
“These actions further align or company with changing economic realities, and they sharpen our focus on improving financial performance for our investors while maintaining our commitment to safety and customer service,” said David R. Goode, chairman, president and chief executive officer of Norfolk Southern.