CALGARY — Canadian Pacific Railway, which posted record profits and revenue last year, says it plans to cut close to 1,000 positions this year as it adjusts to lower shipment volumes and tries to become more efficient.
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.
“There is still more to accomplish,” CEO Hunter Harrison said during a conference call Thursday about the company’s fourth-quarter and year-end results.
The railway had $6.71 billion in revenue and $1.35 billion in net income in 2015, though that still fell below analyst expectations.
The company also said it had reduced its workforce by 12 per cent, eliminating nearly 1,800 jobs last year, as shipments dropped three per cent. The railway said the job losses take into account changes to labour agreements in the United States that alter scheduling rules, allowing for fewer railroad workers.
CP expects to build off its strong results, despite concerns about the economy that could affect some types of freight that it carries through its North American rail network, the company said.
“We’re going to be able to convert what the economy does provide us and poise ourselves for a strong bounce back when the economy comes back,” said president and chief operating officer Keith Creel.