Coronavirus USA Updates: Amtrak is preparing to cut its workforce by up to 20%

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Coronavirus USA Updates: Amtrak is preparing to cut its workforce by up to 20%
Coronavirus USA Updates: Amtrak is preparing to cut its workforce by up to 20%

Amtrak is preparing to reduce its workforce by up to 20%, citing the effects of the pandemic.

“Our ridership and revenue levels have been down 95% or more year-over-year since the pandemic began,” CEO Bill Flynn wrote in a memo to employees.

The railroad company is projecting ridership levels in 2021 will be 50% of what it was in 2019.

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Amtrak said the reduction is necessary to ensure they can “continue to make critical investments in our core and long-term growth strategies, while also keeping safety as our top priority.”

“We are currently working to finalize a plan for achieving these workforce reductions in FY 2021 and have started the process of designing our go-forward structure,” Flynn wrote.

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“As we look ahead to FY 2021, it is clear we have no choice but to reduce our overhead structure to better align our costs with our revenues,” Flynn wrote.

In a letter to Congress, Amtrak said it needs $1.4 billion in supplemental funding for the next fiscal year — in addition to the $2.040 billion annual grant request the company submitted to Congress earlier this year. Amtrak received $1 billion through the CARES Act and the company has taken numerous cost-cutting measures to help offset revenue losses caused by the pandemic, including reducing schedules across its system.

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