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

Just Posted

Two people dead after Highway 1 collision west of Kamloops

Two-vehicle accident closed Trans-Canada Highway for more than five hours

Province, feds, Wet’suwet’en announce progress in MOU talks

Community engagement process launched to implement northern B.C. First Nation’s rights and title

Crown Lease secured for land for new Loon Lake fire hall

Construction on hall to replace one destroyed in 2017 expected to start next year

Psalm 23 Society gives hope to people, gives back to community

‘When someone reaches out we want to be there for them’

Save Our Summer concert tour coming to Ashcroft, Clinton, Lytton

Los Borrachos embarks on first Canadian tour to bring free concerts to B.C. communities

‘Don’t kill my mom’: Ryan Reynolds calls on young British Columbians to be COVID-smart

‘Deadpool’ celebrity responds to premier’s call for social influence support

Captain Horvat’s OT marker lifts Canucks to 4-3 win over Blues

Vancouver takes 2-0 lead in best-of-7 NHL playoff series with St. Louis

Widow of slain Red Deer doctor thanks community for support ahead of vigil

Fellow doctors, members of the public will gather for a physically-distanced vigil in central Alberta

Protesters showcase massive old yellow cedar as Port Renfrew area forest blockade continues

9.5-foot-wide yellow cedar measured by Ancient Forest Alliance campaigners in Fairy Creek watershed

Taking dog feces and a jackhammer to neighbourhood dispute costs B.C. man $16,000

‘Pellegrin’s actions were motivated by malice …a vindictive, pointless, dangerous and unlawful act’

Racist stickers at Keremeos pub leaves group uneasy and angry

The ‘OK’ hand gesture is a known hate-symbol

VIDEO: World responds to B.C. girl after pandemic cancels birthday party

Dozens of cards and numerous packages were delivered to six-year-old Charlie Manning

Expected fall peak of COVID-19 in Canada could overwhelm health systems: Tam

National modelling projections released Friday show an expected peak in cases this fall

Most Read