Alaska Railroad Corp.
Author | Gallion, Mari |
Position | INSIDE ALASKA BUSINESS |
The Alaska Railroad Corp. has announced the elimination of 54 positions as part of a major corporate restructuring effort. The restructuring results from the fact that ARRC has experienced a $45 million negative swing in finances from 2011 until now. Contributing factors include: a significant drop in revenue from key freight customers (coal and petroleum); millions less in federal funding, along with a jump in required matching funds; and at least $15 million per year to implement a positive train control system as required by an unfunded federal mandate.
Because ARRC curbed hiring as the revenue picture became clear last year, 25 of the 54 eliminated positions are already vacant, thus lowering the number of actual layoffs to 29. Eliminated positions represent an 8 percent reduction in...
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