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

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

The last three wild northern spotted owls live near the Spuzzum Watershed outside of Hope. The province recently ordered a halt to logging for at least a year to give the owls a chance to survive.  (Photo/Jared Hobbs)
Logging halted in northern spotted owl habitat near Hope

Halt will last at least a year, gives time to formulate survival plan for Northern Spotted Owl

The Rocket Science S.T.E.M. camp will run virtually during spring break. (Submitted photo)
Abbotsford Airshow, Gearbots Educational Resources launch Rocket Science camp

Virtual format of camp open to students aged nine and up, will run during spring break

Bald eagles descended on the Harrison River near Sts’ailes during the 2019 Bald Eagle Festival. The Sts’ailes First Nation will be developing a heritage trail near the river with recently announced provincial grant funding. (Grace Kennedy/The Observer)
More than $2.7M in funding coming for projects in FVRD, Hope, Sts’ailes, Agassiz

Funding will go to support new trails, building upgrades in the Fraser Valley

The Agassiz-Harrison Local Health Area saw an additional three cases of COVID-19 between Feb. 14 and Feb. 20. (BCCDC)
Agassiz, Harrison maintains low number of new COVID-19 cases

The area saw three new cases between Feb. 14 and 20

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature. (B.C. government)
B.C. reports 10 additional deaths, 395 new COVID-19 cases

The majority of new coronavirus infections were in the Fraser Health region

B.C. Court of Appeal in Vancouver. (File photo: Tom Zytaruk)
Court makes public ‘abbreviated’ reasons for judgment in Surrey Six slaying appeals

Six men were murdered in suite 1505 of the Balmoral Tower in Whalley on Oct. 19, 2007

A 50-year-old man was stabbed in an altercation that started with a disagreement about physical distancing. (File photo)
Argument about physical distancing escalates to stabbing in Nanaimo

Victim, struck with coffee cup and then stabbed, suffers minor injuries; suspect arrested

NDP leader Jagmeet Singh holds a press conference on Parliament Hill in Ottawa on Wednesday, Feb. 24, 2021. THE CANADIAN PRESS/Sean Kilpatrick
NDP will not trigger election as long as pandemic continues: Singh

‘“We will vote to keep the government going’

Police stopped car riddled with bullets in Whalley Monday night. (Photo: CFSEU)
Police seize two pounds of pot, $25K from Surrey car riddled with bullet holes

This was in the neighbourhood of 104th Avenue and Whalley Boulevard on Monday night

“Support your city” reads a piece of graffiti outside the Ministry of Finance office. (Jane Skrypnek/News Staff)
Slew of anti-bylaw graffiti ‘unacceptable’ says Victoria mayor, police

Downtown businesses, bylaw office and Ministry of Finance vandalized Wednesday morning

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. (THE CANADIAN PRESS/Nathan Denette)
Vaccinating essential workers before seniors in B.C. could save lives: experts

A new study says the switch could also save up to $230 million in provincial health-care costs

The late Michael Gregory, 57, is accused of sexually exploiting six junior high students between 1999 and 2005. (Pixabay)
Former Alberta teacher accused of sexually assaulting students found dead in B.C.

Mounties say Michael Gregory’s death has been deemed ‘non-suspicious’

Most Read