American railroad Union Pacific (UNP) will lay off 500 managers and 250 other rail employees in an effort to bring down costs, the AP reports.
The cuts, expected to take effect by mid-September, will eliminate about 8% of the company's managers. A majority of the layoffs will take place at Union Pacific's headquarters in Omaha, but will impact its 23-state network.
Merely reducing the number of open positions combined with improving productivity was not enough to eliminate costs, Union Pacific CEO Lance Fritz said.
Shares of Union Pacific traded up 0.95% to $105.85 Wednesday.
Watch More with TheStreet: