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.

Just Posted

New water storage reservoir approved for Crofton

North Cowichan will be spending more than half of an additional one-time… Continue reading

Campbell River mom’s iPhone containing priceless photos stolen from Victoria hospital parkade

The phone contained photos, heartbeat recordings of her late son

Chemainus CHAMP helps deliver message about playing safe

Young girl born a double arm amputee joins War Amps float in Vancouver parade

Population increase a disaster to the climate

Impact of more people weighs heavily on the Earth

Give us a fair chance before passing judgment

Insinuating young people political pawns not helping

VIDEO: Led by ‘Marriage Story,’ Netflix dominates Golden Globe noms

Netflix flexed its muscles across all categories, just as it is girding for battle with a host of new streaming services

B.C. VIEWS: An engine that hums right along

First Nations are leading a new surge of investment in B.C.

74% of 911 calls are from cellphones, so know your location: E-Comm

Cell tower triangulation generally only narrows location down to the block someone is calling from

No negligence in RCMP actions in B.C. teen’s overdose death: IIO

Police acted properly when they responded to the first reports of the boy being in distress

320 years since the ‘Big One’ doesn’t mean it’s overdue: B.C. professor

‘It could happen today, tomorrow or 100 years from now’

Would you leave your baby alone to go to the gym? This Canadian dad did

The man identifies just as a divorced dad with a nine-month-old baby

B.C. coroner asking for help identifying man found dead in Peace region

Mounties have deemed the man’s death not suspicious and believe he died earlier this year

Lawyer competence includes knowledge of Indigenous-Crown history: B.C. law society

All practising lawyers in B.C. will be required to take a six-hour online course covering these areas

Wealth of Canadians divided along racial lines, says report on income inequality

One interesting finding was that racialized men have a higher employment rate than non-racialized men

Most Read