WASHINGTON – Amtrak said today that it has eliminated 450 management positions as it looks to cut costs and reach operational profitability by 2028.
Bob Johnston
Amtrak said the reduction in management positions, when combined with other unspecified efforts, would save the company $100 million annually.
The railroad, which posted a $705 million operating loss in its most recent fiscal year, had publicly announced the belt-tightening was in the works on March 28.
“Given the current environment, the Executive Leadership Team and the Board have determined that we must act now,” Amtrak said at the time. “We will do this by examining our costs, including the size of our management staff, in a proactive and controlled way. In addition, we will be more selective in starting new projects and will look harder for efficiencies and innovative ways to address the problems and opportunities we face.”
The environment Amtrak referred to is a reflection of such factors as efforts by the first Trump administration to cut the company’s funding, as well as uncertainty over funds that have already been allocated but not disbursed, and concerns that operations will not receive the same sort of support in Congress that has prevented previous deep cuts.
Amtrak’s staff has grown in recent years, in part as it bulked up areas needed to manage the major infrastructure projects funded under the Biden administration.
Separately, Amtrak announced today that its board of directors will hold a public meeting on May 22. Among the topics up for discussion: Reports from Amtrak Finance and Commercial divisions, a National Network strategy update, a Capital Project Delivery review, and an update on NJ Service Area/Summer 2025 preparations.
Note: Updated at 4:10 Central with more detail from Amtrak memo to employees.
How can an organization become competent and gain respect with “happy talk” and lack of transparency embedded in its “DNA”. Passenger service doesn’t make money; it may at best equal or cover some of the above-the-rail costs. David P. Morgan (“DPM”) said we as a nation must decide what service we’re willing to pay for, and commit to providing it – a multi-administration (regardless of party) commitment with refinements as required. Otherwise, we’re just “playing with trains.”
This is a start, but they have a long way to go. The National Network strategy update should be to get what they are running now in a state of good repair before they attempt any increases in service.
“reach operational profitability by 2028” – OMG, are we back on George Warrington’s “glidepath to self-sufficiency” now?
Would it be possible to get something of an organization chart from Amtrak that might list the number of people in each region and functional classification? Within FM_G_A/FM_603 Qualified Management they were spending $1.015 Billion a year in FY19, with little allocation to capital accounts. It seems like these cuts happen to people running parts stores or other programs that actually get something done but how can they really be spending this much on management?
Does this include a report and the activation timetable on actually operating the pending “new” Acela?
Do they even have a firm start date yet, not just “Spring”. What year???