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Burlington Northern to Cut 1,400 Jobs

May 22, 1999|Bloomberg News

Burlington Northern Santa Fe Corp., the second-largest U.S. railroad, said it will cut 1,400 jobs, or 3.2% of its work force, and reduce capital spending and shake up management as it expects second-quarter profit to miss estimates. Burlington Northern will cut 1,000 hourly, unionized jobs and 400 management positions, or about 7% of its salaried work force. The Fort Worth-based company said it expects earnings to fall below the 61 cents analysts had forecast and the 58 cents it earned in the year-earlier quarter. The actions come as Union Pacific Corp., the nation's largest railroad and Burlington Northern's main rival in the West, retakes business it lost in 1997 and 1998 because of a logjam on its tracks. Shares of Burlington Northern fell $1.19 to close at $33.75 on the New York Stock Exchange.

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