advertisement

---

The Alaska Railroad Corp. (ARRC) yesterday announced plans to eliminate 54 positions as part of a major corporate restructuring.

Since 2011, the railroad has registered a $45 million decline in finances due to a significant drop in revenue from key coal and petroleum customers; millions less in federal funding, along with a jump in required matching funds; and at least $15 million per year in expenses to implement a federally required positive train control system, ARRC officials said in a press release.

Because the railroad curbed hiring as "the revenue picture became clear last year," 25 of the 54 eliminated positions already are vacant, lowering the number of actual layoffs to 29, they said. Eliminated positions represent an 8 percent reduction in the year-round and seasonal workforce, and equate to an annual estimated cost savings of $4.5 million in wage, salary and benefit costs.

"Our team took the utmost care to ensure reductions would not negatively affect the way we interact with customers," said ARRC President and Chief Executive Officer Chris Aadnesen.

ARRC has conducted two other layoffs in recent years. In 2008-09, the railroad eliminated 191 positions after the global economic downturn caused a severe drop in passenger and freight traffic. And early last year, it eliminated 52 mostly seasonal positions after the Flint Hills North Pole refinery reduced production.

In addition to job cuts, ARRC is implementing several cost-cutting measures, such as modifying asset usage and service levels; right-sizing fleets and improving maintenance practices for vehicles and heavy equipment; conserving fuel; and improving purchasing controls and procedures. The railroad also plans to continue seeking new and expanded revenue sources.

"Employees from across the company have examined the way we do business, helping to find greater efficiencies wherever possible," said Aadnesen.