Second quarter operating losses of $343 million have forced CP Rail to cut 1,900 jobs across Canada.
“We don’t know where the cuts will be yet. We’re looking across the country in every department,” said CP spokesperson Ian LaCouvee in Calgary.
Permanent jobs will be lost in all parts of the organization including management, administration, maintenance shops, train operations and track maintenance, said a company news release. The layoffs are expected to be complete by the end of 2000.
The company has 19,000 employees in Canada, the United States and overseas.
Read Also
Alberta eases water access for riparian restoration
Alberta government removes requirement for temporary diversion licence to water plants up to 100 cubic metres per day for smaller riparian restoration projects
CP also reported year to date operating income of $298 million, down $26 million for the same period last year. The drop was attributed to continued softness in bulk revenues earned from hauling grain and coal. The company expects this trend to continue.
Freight revenue for the second quarter declined to $798 million from $831 million for the same time last year. Grain revenue was flat and reduced domestic demand affected fertilizer revenues.
There were better earnings garnered from intermodal, automotive and forest products due to high North American demand.
Revenue from these sectors increased 11 percent, 16 percent and 18 percent respectively.
