Rail

Amtrak cuts management in bid to save $85 million

Posted on July 1, 2001

Amtrak will cut management positions as part of a restructuring plan to save $85 million dollars for FY 2002. According to a statement by President George Warrington, about 2,900 management employees were offered voluntary separation and early retirement plans. “We didn’t issue a percentage for the cuts. The dollar figure that we are looking to save is $85 million and we won’t know how many actual positions that is until the voluntary separation period has ended,” said Amtrak spokeswoman Karina Van Veen, responding to the 15% management total given in recent press accounts. "A lot of it depends on obviously what their salary is. If higher level people take it ... fewer people would be required to go.” Another restructuring initiative is the consolidation of the management positions of Amtrak’s four Strategic Business Units (Amtrak West, Intercity, Northeast Corridor and Mail and Express) under one newly created position of executive vice president of operations. Stan Bagely, currently serving as president of the Northeast Corridor, will be appointed to this new position on Oct. 1. Warrington’s statement explained that over the next four to six months, Amtrak will “seek to eliminate overlapping operations, tighten cost controls and improve revenue opportunities.” Ed Walker, Amtrak Intercity president, will oversee that project. “The magnitude of these changes will depend, in part, on the continuing success of current cost management and revenue generation initiatives and the impact of current economic trends,” said Warrington. Kenneth Mead, the U.S. DOT’s inspector general, has stated that large cost cuts could actually harm Amtrak by withdrawing money for improvements and maintenance. “We understand his concerns,” said Van Veen. “We’re concerned as well, but we are doing everything we possibly can to make it to the goal of self-sufficiency.” Under a 1997 congressional mandate, Amtrak must obtain self-sufficiency by December 2002.

View comments or post a comment on this story. (0 Comments)

More News

Feds extend deadline for Honolulu rail recovery plan

In a letter, the FTA denied the City of Honolulu’s request to extend the deadline for the so-called recovery plan until the end of June.

FTA releases WMATA traction power report, issues safety directive

The special directive is based on 22 findings from an FTA investigation report into the condition and safety performance of the Metrorail TPE system, which was also released on Friday.

NJ TRANSIT hearing focuses on PTC

Some lawmakers expressed concern as to whether NJ Transit would be able to implement positive train control by the federally mandated deadline of Dec. 31, 2018.

Alstom to supply 14 metro cars to RATP, STIF

Due to circulate on line 4, the MP14 trains will help to increase the capacity and quality of transport on the line, with a targeted global service equivalent to that of line 1.

Development of iconic perfume threatened by high-speed rail plan

Chanel says it will leave Grasse, dubbed the perfume capital of the world, unless plans are dropped to drive a TGV line through the fields of flowers required to make the world’s most famous scent

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close