OMAHA, Neb. (AP) - Union Pacific will lay off 475 railroad workers and eliminate another 200 contract jobs by the end of the year to further reduce its expenses.
The Omaha, Nebraska-based railroad announced the layoffs Tuesday, and Union Pacific officials said more job cuts are likely over the next two years.
UP Chairman Lance Fritz says the layoffs will help make sure the railroad remains strong and competitive. Union Pacific is working to cut its general and administrative expenses by 30 percent before 2020.
The railroad said it will eliminate one of its three operating divisions, centralize its engineering unit and consolidate other functions as part of the cuts in the fourth quarter of this year.
Union Pacific is scheduled to release its third-quarter earnings report on Thursday.