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Amtrak President and Chief Executive Officer George Warrington July 27 announced plans to restructure the national passenger railroad, which includes reducing its management workforce by nearly 3,000. Officials expect the plan — in addition to ongoing cost-reduction and revenue-generation measures — will save the company as much as $85 million beginning in fiscal-year 2002, which starts Oct.1.



Measures include the creation of an organizational restructuring transition initiative to seek and eliminate overlapping operations, tighten cost controls and improve revenue opportunities. Ed Walker, president of Amtrak Intercity, has temporarily been assigned to lead this project.



In addition, Amtrak’s four Strategic Business Units (Amtrak West, Intercity, Northeast Corridor, and Mail and Express) will be consolidated under Northeast Corridor President E.S. Bagley, who will become executive vice president of operations, effective Oct. 1. In his new position, Bagley will be responsible for headquarters staff and field operations, and mechanical and engineering, environmental, safety, police, and crew management departments. Overlapping functions within the business units also will be consolidated.



Amtrak is offering voluntary separation and early retirement to about 2,900 management employees "in anticipation of decisions, which have not yet been finalized, but which are expected to significantly reduce the number of management employees companywide," according to a prepared statement.



Voluntary separation will be offered from Aug. 3 to Aug. 24; voluntary retirement, Sept. 15 to Oct. 31.

Meanwhile, Amtrak continues to review its operations for additional ways to improve efficiency.