BUSINESS

CP Rail Layoffs To Hit 1,000 As Shipping Volumes Fall

01/21/2016 12:36 EST

CALGARY — Canadian Pacific Railway, which posted record profits and revenue last year, says it plans to cut 1,000 positions and slash spending by US$279 million (C$400 million) this year as it adjusts to lower shipment volumes and falling commodity prices.

The Calgary-based company says most of the cuts to unionized and management positions will result from attrition and kick in by mid-year.

Since 2012, the railway has cut 6,000 to 7,000 positions.

CP made the announcement on a conference call today after releasing its fourth-quarter and year-end results.

The railway says it had $6.71 billion in revenue and $1.35 billion in net income in 2015, though that still fell below analyst expectations.

The railway has cut 6,000 to 7,000 positions since 2012. The company in the past year has cut 12 per cent of its workforce and now employs 12,800 people in its Canadian and U.S. operations.

The railway had US$4.69 billion (CA$6.71 billion) in revenue and $US94 million (CA$1.35 million) in net income in 2015, which still fell below analyst expectations.

CP's share price on the TSX fell by about 5 per cent after Thursday's earnings were released.