The layoffs have been driven by disappointing revenue.
The Calgary-based transcontinental railway company's revenue is expected to drop off in the second quarter of 2016, due to lower volume - despite grain movement being above average this year - and softening consumer demand.
The company's revenue for the second quarter of 2016 is expected to decline about 12% from revenues in the same quarter last year, the Wall Street Journal reports. This also follows revenue declines from the first quarter as well.
Meanwhile, the company asserts that the layoffs set to take effect on Thursday will only be temporary.
Still, the upcoming maintenance layoffs have spurred concerns in consumers and investors about safety on the railway.
Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.
The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, expanding profit margins and growth in earnings per share.
TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: CP
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.