CSX cuts workforce by 3,700 so far in 2017

CSX Corp. has eliminated 2,700 jobs so far this year, as the Class I works through its transition to a more efficient operating plan, Chief Financial Officer Frank Lonegro told investors at a conference last week.

In addition to the 2,700 employees, CSX has eliminated 1,000 contractor and consultant positions, Lonegro said during a presentation at the Cowen & Co. Global Transportation Conference held in Boston.

Since E. Hunter Harrison took over as the Class I's chief executive in March, the company has been moving toward a precision scheduled railroading model for  operations. Controlling costs is a major component of the model, Lonegro said.

Earlier this year, the railroad announced it cut 951 management positions, primarily at its corporate headquarters in Jacksonville, Florida. Non-management headcount is down by 7 percent so far this year.

CSX employed 22,313 people as of July, according to monthly employment reports filed with the Surface Transportation Board.

Meanwhile, the Class I expected to reopen traffic into Jacksonville last night, as crews worked through extensive power outages and fallen trees caused by Hurricane Irma. Today, CSX operations teams are working to resume service to Tampa tonight, railroad officials said in a customer service update.

CSX's route from Jacksonville to Orlando is still being evaluated. A repair timetable has yet to be determined.

"All intermodal traffic destined to Florida East Coast Railway locations — Fort Lauderdale, Fort Pierce, Miami and Port Miami — has resumed acceptance at in-gate," the service update stated.

As train service is restored in areas affected by storm damage, delays are expected for traffic moving into and out of Florida, Georgia, North Carolina and South Carolina due to commercial power outages that are affecting recovery, CSX officials said.