CSX railway has announced 1,000 management level layoffs

More bad news for the economy as CSX railway has announced 1,000 management level layoffs according to this Florida Times Report.

CSX will be laying off 1,000 management-level employees, the Jacksonville-based railroad confirmed Tuesday. The same day, the company announced that CEO and Chairman Michael J. Ward and President Clarence W. Gooden are retiring, effective May 31.

The majority of layoffs will come in Jacksonville, company spokesman Gary Sease said, but the exact numbers are not known yet. The company has more than 2,500 management employees in the area.

The impacted employees will be notified next month.

The announcements were just the latest in what’s been a hectic month at the railroad. CSX has been a target of activist investor Paul Hilal’s Mantle Ridge LP, which is backing railroad veteran Hunter Harrison to become CSX’s chief executive.

The company has not commented further on the layoffs nor acknowledged any connected between them and Harrison’s potential arrival. But while Harrison has developed a reputation for turning around three previous railroads – Illinois Central, Canadian National, and Canadian Pacific – they’ve often come with a price. During Harrison’s five years at Canadian Pacific, employment was reduced by more than 6,000, about one-third of its total staff.