UP to cut some management jobs as part of organizational restructuring

Union Pacific Railroad yesterday announced organizational changes that include the reduction of about 5% of its management workforce.

The changes are being made to "reduce layers, expand spans of control and focus on empowering employees on the front lines to drive decision-making," according to an emailed statement from Kristen South, senior director of corporate communications and media relations.

"All employees whose roles were impacted were given the opportunity to apply for craft professional roles in other parts of the railroad," South said.

In a letter to employees, UP CEO Jim Vena said company departments have examined ways to restructure and factor in anticipated attrition. Department leaders then designed "more effective organizational structures" in their departments. In some cases, it meant "small tweaks; for others, the changes are more significant," Vena's letter stated.

"There are critical and meaningful projects across the company that need additional support, and there are talented employees impacted by departmental resets who can help," Vena wrote. "Our senior executives identified 23 strategic projects spanning nine departments, which is where we will deploy some of these employees. Each project has an executive champion and a team lead."

More than 100 employees were offered the opportunity to join those teams, Vena said. Once those projects — which span several months — are completed, those employees will be prioritized to backfill future attrition, as well as fill future roles at the company, he added.

"Many people may believe the sole purpose of these changes is financial. That could not be further from the truth," Vena wrote. "This cultural transformation is essential for us to succeed. As we run more responsibly and effectively, the results will resonate for everyone."