CSX Railroad to Cut Up to 1,000 Jobs

[private_ryan]

http://www.ajc.com/business/content/business/ap/ap_story.html/Financial/AP.V8531.AP-CSX-Job-Cuts.html
JACKSONVILLE, Fla. (AP)--CSX Corp. announced Monday it will cut 800 to 1,000 nonunion employees over the next six months, as part of a plan to streamline its management structure and to create a smaller organization.

The railroad said the layoffs will cost $60 million to $80 million, which will be recognized over the next two quarters. The company said it expects to realize the savings by the middle of 2004.

The Jacksonville, Fla.-based company is streamlining its management structure from 11 layers to no more than eight.

``It will be a time of some consternation by our employees, but we've asked them to focus on the jobs at hand,'' CSX spokesman Gary Sease said.

The company did not say which regions would be most affected. About 3,000 of the company's 5,000 nonunion employees are based in Jacksonville, Sease said. CSX has 34,000 employees and its rails cross 23 states.

[bluestateguy]

1. Unemployed workers in Florida?

Somehow I think Karl Rove will stick his fat fingers in this to prevent 1000 Florida voters from becoming unemployed in an election year. He'll see to it that only workers in very blue or very red states are given the ax.

[0007]

2. Ah, more progress.....

things are starting to look. I saw a homeless man sleeping in a new G.E. refrigerator box.

[toddzilla]

6. csx.. wasn't that the source of some back scratching?

http://www.forbes.com/2002/12/10/cx_da_1210topnews.html

i thought there was some nefarious dealings about this.. can't remember specifics though.

[Ilsa]

3. Where's the list?

Is someone keeping a list of all these companies who have announced today that they are cutting jobs? One said their plant in Fort Smith AR is moving to mexico. Thomasville is cutting jobs. Now CSX. Who else?

Nothing but McJobs will be left. Even CNN Moneyline with Lou Dobbs is running a new nightly segment on the race to the lowest wages.

My friend's daughter is studying chemistry in college. Her counselors have told her she needs to double in an applied science field (pre-med or something) if she hopes to have a job after she graduates.

[La_Serpiente]

4. Wasn't that the company

that John Snow was previously the CEO of?

[cosmicdot]

8. yes, he obviously bailed in the nick of time + plus the Carlyle Group...

...bought a chunk of CSX...

from truthout.org

(*Editors Note | CSX was run by CEO John Snow until last week, when Snow was tapped to replace Paul O'Neill as the Treasury Secretary by the Bush administration. The Carlyle Group is an incredibly powerful multinational corporation that enjoys senior advisors like George Herbert Walker Bush and James Bazker III. Now, CSX and Carlyle have joined. The same names seem to keep popping up in all sorts of interesting places. - wrp)



Carlyle Group Buys Chunk of CSX
By William Spain
CBS.MarketWatch.com

Tuesday, 17 December, 2002

A private equity group with interests in everything from soda pop to self-propelled guns has nipped off a piece of CSX.

After the bell Tuesday, transportation giant CSX announced that it would sell a majority stake in its domestic container shipping unit -- CSX Lines -- to the Carlyle Group for approximately $240 million in cash and $60 million in securities.

The deal, subject to regulatory approval, is expected to close in the first quarter of 2003.

According to Michael Ward, CSX president, "completion of this transaction is consistent with our long-stated strategy of becoming a more rail-based organization, strengthens our balance sheet and provides shareholders with significant value."

CSX Lines, which moves goods between the continental United States and Alaska, Hawaii, Guam and Puerto Rico, accounted for about 8 percent of the company's $8 billion in revenues last year.

http://www.truthout.org/docs_02/12.20D.carlyle.csx.htm

[ClintonTyree]

5. Yes but..................

all of these high paying jobs will be replaced by low paying jobs in the service industry due to the Bush economic miracle, haven't you heard? Everything is coming up roses for these and many more workers like them. I've seen it on the television newscasts, it must be true. They'll be thanking their lucky stars soon! Thank Buddah for George W. Bush!

[saigon68]

10. 1000 new McJobs needed in the fast food sector

This is an opportunity for these people to wear headsets and learn the price is 49 cents to "supersize your order".

No health insurance though, but then again a lot of fries that are about to be thrown out due to shelf life to munch on!!!!

[jenk]

7. ah yes, the recovery

[Mel]

9. All the more reason

for Senator Frist the cat killer to take 30 hours of the Senates time to debate about 4 judges that already have jobs.