CN Rail suspends financial guidance, continues temporary layoffs amid pandemic – The Globe and Mail

Canadian National Railway Co. has suspended issuing financial guidance to markets and will continue parking trains and laying off employees amid the COVID-19 pandemic that has closed factories and stores across North America, and killed more than 2,700 Canadians. CN announced Monday that it has laid off 16 per cent of its work force, reduced…

CN Rail suspends financial guidance, continues temporary layoffs amid pandemic – The Globe and Mail

Canadian National Railway Co. has suspended issuing financial guidance to markets and will continue parking trains and laying off employees amid the COVID-19 pandemic that has closed factories and stores across North America, and killed more than 2,700 Canadians. CN announced Monday that it has laid off 16 per cent of its work force, reduced its train schedule by 23 per cent, parked 500 locomotives and idled four train yards – steps it began last fall – as freight volumes plunge. “The COVID-19 pandemic is having an unprecedented and extraordinary impact on the economy,” CN said in a statement accompanying its first quarter-financial results, released after markets closed on Monday. “The economic outlook, and therefore overall demand for transportation services, are highly correlated with the duration of containment measures and the impacts on businesses and consumers, which at this point remain uncertain.” CN began parking rail cars and laying off employees late last year, as demand for freight services declined. Jean-Jacques Ruest, the railway’s chief executive officer, told analysts on a conference call on Monday that the company has cut 3,800 jobs since then, including temporary layoffs of 2,500 employees. Rob Reilly, CN’s operating chief, said 700 weekly train starts have been cut and work has been halted at switching yards in Quebec, Ka
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