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

QUINN’S QUIPS: What makes a building historically significant?

There’s a difference between heritage designation and a heritage register

Nominate a hero for BC Autism Awards

Quality Foods sponsoring the third annual awards

ACTIVE LIVING: Eating well builds a healthy immune system

Port Alberni registered dietitian Sandra Gentleman writes about health issues

ALBERNI GOLF: Golf club hosts mixed couples tournament

Due to the COVID-19 pandemic, the tournament was limited to 48 players, members only

ARTS AROUND: Rollin Art Centre hosts last workshop of the summer

Find out how you can support the Community Arts Council through COVID-19

B.C. records new COVID-19 death, 85 more cases; Horgan calls on celebrity help

This brings the total number of active confirmed cases to 531 across the province

Filmmaker James Cameron’s Comox Valley winery up for sale

The director behind The Terminator and Titanic puts Beaufort Winery on the market after six years

Large missing python found ssssafe in Victoria after being on the lam for weeks

The snake was located more than six kilometres from where it went missing

B.C. announces multi-year plan to double treatment beds for youth with addiction

This will bring the total number of new beds specific to those 12 to 24 years old to 247 province-wide

B.C. man who nearly died from COVID-19 reflects on one-month battle

Robert Billyard was in an induced coma to ensure his body would not fight the ventilator to breathe

Cowichan’s Dillabaugh checks in from the NHL bubble in Toronto

Flyers’ Duncan-born goalie coach weighs in on hockey restart

Wedding party bear sprayed at Okanagan campsite irks locals

Latest criminal activity at the Meadows leaves locals frustrated

Paramedics fired for allowing patient to crawl for treatment on Downtown Eastside: court documents

The man spent three days in intensive care and three months recovering in hospital from sepsis

Most Read