CN Rail confirms job cuts as weakening economy cuts into freight volumes

Railroad also said it was affected by a slowdown in the B.C.’s forestry sector

Canadian National Railway Co. is confirming job cuts as it deals with a weakening North American economy that has eroded demand for railroad transportation.

The company said it is “adjusting its resources to demand” but wouldn’t say how many people will be affected.

It said some employees will be placed on furlough and there will be reductions in both management and union job numbers.

In October, Canada’s largest railroad operator cut its adjusted earnings per share outlook percentage for 2019 to the high single digits, down from predictions of low double-digit growth.

Freight volumes came in below expectations in the third quarter and manufacturing has also fallen off, it said.

ALSO READ: CN Rail infrastructure workers receive 14 per cent wage increase

The railroad also said it was affected by a slowdown in the B.C.’s forestry sector, where high log prices and dwindling timber supply have prompted shutdowns or curtailments in more than two dozen mills, and due to the weather-delayed grain crop on the Prairies.

“As explained during CN’s Q3 results, the company is adjusting its resources to demand,” said spokesman Alexandre Boule in a statement.

“This includes the difficult decision of adjusting its workforce to demand levels by placing some employees on furlough and reducing both management and union job numbers due to a weakening of many sectors of the economy. These adjustments have already started to take place across the network.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

57 new COVID-19 cases confirmed in Alberta on Friday

Central zone remains at three active cases

PHOTO: Stampede Cattle Raffle winner

Rimbey couple take home cash instead of cattle

Man arrested in Maskwacis for second degree murder

42-year-old Arthur Trinity Brown was located and arrested on June 30

Red Deer remains at two active COVID-19 cases

Alberta confirms 94 new cases over past two days

PHOTOS: Canada Day in Ponoka

Fireworks, pancake breakfasts and the grand opening of the Ponoka Farmers Market

PODCAST: Black Lives Matter in central Alberta Part 2

More insight into the Black Lives Matter movement of central Alberta

Protesters return to St. Louis area where couple drew guns

Protesters return to St. Louis area where couple drew guns

Heavy rain floods southern Japan, leaving over dozen missing

Heavy rain floods southern Japan, leaving over dozen missing

At Rushmore, Trump says protesters seek to ‘defame’ heroes

At Rushmore, Trump says protesters seek to ‘defame’ heroes

First Nations coalition rejects recommendation to lift Sen. Beyak’s suspension

First Nations coalition rejects recommendation to lift Sen. Beyak’s suspension

Canada restricts dealings with Hong Kong over new security law

Canada restricts dealings with Hong Kong over new security law

Man accused of ramming gate at Rideau Hall with truck faces multiple charges

Man accused of ramming gate at Rideau Hall with truck faces multiple charges

Hosting regular season MLB in Toronto “totally different ball game”

Hosting regular season MLB in Toronto “totally different ball game”

Siakam says he feels safe in Florida, despite explosion of COVID-19 cases

Siakam says he feels safe in Florida, despite explosion of COVID-19 cases

Most Read