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

COVID-19 testing centre opens at Fraser Canyon Hospital

30 tests can be done at the collection centre each day, health authority reccommends booking ahead

Chilliwack man hoping to restore ‘59 Chevy with big lottery win

Hervey Blois, a retired veteran, says he’s ‘dumbstruck’ by $500,000 win on lottery website

‘Solitary’ filming in Harrison Hot Springs

Portions of East Sector Park closed until October 6

SD78 board: Cautious optimism, anxiety mix as school year begins

To say it’s been an eventful two months for Superintendent Balan Moorthy… Continue reading

Defence in Fraser Valley chicken abuse cases asks BC Supreme Court to drop the charges

Sofina Foods and Chilliwack company say undercover video by ‘vigilante group’ violates Charter rights

Weekend sees 267 cases, 3 deaths in B.C.; Dr. Henry says events leading to COVID spread

There are currently 1,302 active cases in B.C., while 3,372 people are under public health monitoring

Lightning strike: Tampa Bay blanks Dallas 2-0 to win Stanley Cup

Hedman wins Conn Smythe Trophy as playoff MVP

16 MLAs retiring from B.C. politics add up to $20M in pensions: Taxpayers Federation

Taxpayers pay $4 for every dollar MLAs contribute to their pensions

Liberals seek to fast track new COVID-19 aid bill after CERB expires

Government secured NDP support for legislation by hiking amount of benefits by $100 to $500 per week

Police investigating shooting in North Delta

Police say occupants of two vehicles exchanged gunfire near 120th Street and 82nd Avenue

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. VOTES 2020: Echoes of HST in B.C. debate over sales tax

Cannabis, tobacco, luxury cars still taxed in B.C. Liberal plan

TransLink CEO asks riders not to enforce mask rules after Surrey bus punch-up

A fight broke out on a bus at 96 Avenue and Scott Road involving a man who refused to wear a mask

She warned her son about toxic drugs, then he was dead

Donna Bridgman’s son died at the age of 38 in Vancouver

Most Read