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Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service

AP Business Writer

OMAHA, Neb. (AP) — The latest rail layoffs this week, combined with an investment fund’s ongoing campaign for control of Norfolk Southern, are renewing concerns among unions and regulators about all the cuts hurting safety and service. The worries about the lean operating model the freight railroads have used for several years as they cut roughly one-third of their workforce are not new. The railroads have defended their approach as a sound strategy to make the most of their resources without jeopardizing safety. But the industry has acknowledged that service suffered after railroads cut too deep during the pandemic. The head of the Surface Transportation Board warned that Wall Street pressure could prompt railroads to shift away from needed long-term investments.

Article Topic Follows: AP National

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