Job Cuts Hit the Rails

North Platte, Neb. -- The nation's economic slowdown has put the brakes on Union Pacific's railroad freight business, forcing layoffs across the nation and, now, in North Platte.

Chad Wilbourn is UP's general superintendent for the North Platte service area, and he delivered the news on Thursday. About 230 people will be furloughed until business improves and they can be called back to work.

In November, UP announced that it had laid off or cut hours for about 1,500 engineers and conductors since January 2007.

A Union Pacific spokesman in Omaha declined on Friday to comment specifically on any of the layoffs.

"While Union Pacific does not disclose furlough numbers, the economy is affecting all the railroads," said Tom Lange, director of corporate communications.

"Putting people on furlough is a difficult yet necessary decision in response to market conditions and for the long-term viability of the company. Many of those on furlough will have a chance to be called back when market conditions improve."

Union Pacific has 21,000 engineers and conductors. It operates 32,400 miles of track in 23 states from the Midwest to the West and Gulf coasts.

Also, Trinity Industries(TRN Quote) is laying off nearly 300 workers at its rail tank car production facility in the Longview area.

The move was confirmed Thursday by John Stroud, executive director of Longview Economic Development Corp. A Trinity spokesman didn't immediately respond to messages left by The Associated Press on Friday.

The Longview News-Journal reports that Stroud said the Dallas-based company attributed the layoffs to a weakening national economy.

Trinity had nearly doubled its Longview-area work force to 1,100 workers in the past three years. Stroud says a reduction of 297 employees will leave the facility with about 850 workers.

Last year, the company told the state it planned to cut 278 people by shuttering two facilities in the Dallas area.