Report: Union Pacific to trim management staff; Nissan recognizes UP customer service, environmental efforts

Union Pacific Railroad said yesterday that it plans to eliminate "several hundred" management jobs in Omaha and elsewhere in the coming months, as the Class I addresses falling cargo volume, according to a report on Omaha.com.

The job cuts, which will come from "terminations and attrition," are part of "necessary steps to align resources with current business requirements," according to the article, which cited a company statement.

"For our company's long-term success, we must take these painful actions to balance workforce levels with today’s business demands," UP President and Chief Executive Officer Lance Fritz said in the statement.

As of July's earnings, the company had temporarily laid off 1,200 employees who work in the train, engine and yard segments of the business, according to the article. The company didn't specify which job categories would be affected by this latest staff cut.

UP employs about 8,000 people in Nebraska and nearly 50,000 people nationwide.

Meanwhile, UP also announced yesterday it had received the Cost Leadership Award from Nissan.

The award recognizes UP's collaboration with Nissan to implement rail network efficiencies, including expanding the auto manufacturer's vehicle distribution network via rail and strengthening rail equipment availability.

Additionally, Union Pacific Distribution Services (UPDS), the Class I's door-to-door transportation subsidiary, received Nissan's Zero-Emission Leadership Award, which recognizes UPDS for strengthening the carmaker's service parts distribution network.

By converting Nissan service parts shipments from truck to rail, UPDS improved service and reduced the automaker's carbon footprint, UP officials said.