500 Employees Lose Jobs in Jacksonville, Fla. as Part of CSX Layoffs
CSX has finished the layoffs it announced more than two weeks ago. The final numbers: 800 employees lost their jobs, including 500 in Jacksonville, Fla..
The company’s original estimate was that about 1,000 positions would be eliminated.
Company spokesman Gary Sease said that about half the 500 employees in Jacksonville left March 6 and almost all of the others will be leaving over the next few days.
March 6 was also the day that the company named Hunter Harrison as its new CEO, effective immediately.
He also said about half were retirement eligible and elected to take the enhanced severance package, which includes access to outplacement services and the Employee Assistance Program. He said he couldn’t give any more details than that.
“These were all difficult decisions,” Sease said in a released statement. “Each of the employees made important contributions, and we are grateful for their service and dedication. While the company has been making significant improvements in efficiency, we have to accelerate our progress to meet stakeholder expectations.”
The last six weeks have been a tumultuous time for the Jacksonville-based railroad. First came word that activist investor Paul Hilal had his eye on CSX and planned to install longtime railroad exec Harrison in the top spot.
On Feb. 21, the company not only announced that CEO and Chairman Michael Ward and President Clarence Gooden were retiring, but that it was laying off about 1,000 management level employees. Sease said the layoffs had been in works well before Harrison entered the picture.
Earlier this week, it was revealed that CSX agreed to pay Harrison a $2.2 million salary, offer a target bonus of $2.8 million and tentatively agreed to reimburse $84 million that Harrison forfeited when he retired early from Canadian Pacific railroad in January.
The company’s shareholders will vote on the $84 million at the annual meeting this spring. The railroad also agreed to give Harrison options on 9 million shares of CSX stock.
Harrison has told the company that he will resign his position if the entire package is not approved.
