Amtrak lays off 250, cuts another 200 open management roles

Amtrak announced this week that it has cut about 450 management roles through layoffs and elimination of open positions, following a review of its costs and management structure.

"This workforce adjustment, combined with other recent cost-saving actions, will help Amtrak save $100 million annually," Amtrak officials said yesterday in an emailed statement.

 In a memo to employees, Amtrak President Roger Harris said the 450 positions represented just over 10% of the management team.

"We took the difficult step of informing about 250 people that their positions were eliminated," Harris said in the memo. "Further, we closed another 200 open positions that were vacated as we have reduced hiring and managed down the company’s rate of growth in recent months."

The railroad is providing affected employees with support and resources, the memo states. "We are grateful for everything our departing colleagues did for Amtrak.

"There is no easy way to complete a staff reduction of this size. Know that we did everything we could to Do the Right Thing and treat everyone involved with dignity, respect and care," Harris added.

The staff reduction follows the recent and abrupt departure of Amtrak CEO Stephen Gardner, who reportedly was forced out by the Trump administration. Gardner's departure occurred a few weeks after billionaire and tech mogul Elon Musk, appointed by President Donald Trump to oversee the Department of Government Efficiency (DOGE), told attendees at an investors technology conference that Amtrak should be privatized.

Rail Passengers Association President and CEO Jim Mathews said in a prepared statement and blog that he believes Amtrak made a mistake in reducing its workforce, considering the massive infrastructure projects underway as a result of funding from the Infrastructure Investment and Jobs Act (IIJA) of 2021.

"These personnel cuts will most definitely hinder Amtrak’s ability to efficiently serve America’s passengers and manage the score of major construction project that Congress funded through the Infrastructure Investment in Jobs Act," Mathews said.

He continued, "The Rail Passengers Association is particularly concerned about reports that Amtrak has laid off members of its procurement team and capital delivery team, who are playing a vital role in managing billions of dollars worth of investments that will address the railroad’s crippling state-of-good-repair backlog."

The association is asking Amtrak to provide more detail on why it made the job cuts.

"If, as is being reported, Amtrak chose to pursue these cuts to achieve an operational profit — a goal not required in any law passed by Congress, during a period of record taxpayer subsidies to the federal interstate highway system — Rail Passengers strenuously disagrees with this decision," Mathews said. "This move has the potential to undermine billions of dollars worth of long-term recapitalization efforts to save millions in its operating budget."

Mathews noted that Amtrak recently announced record levels of ridership and revenue on national and key state-supported routes.

"We believe the American public is best served by a strategy of improving its operating ratio by growing service," he said.