CSX is announcing today that we are taking actions to streamline our car repair, inspection and maintenance operations at 16 locations across the system. This difficult decision will affect approximately 111 craft employees and five managers, and it was made only after a thorough review of all options.

As you know, CSX and the entire rail industry is experiencing fundamental shifts in our business mix, as well as lower traffic volumes resulting from challenging economic conditions. The reductions announced today are part of our ongoing efforts to align our resources to the business realities that were facing.

We understand these reductions will be difficult for affected employees and their families. Were working to support employees through the transition and to help identify potential opportunities to transfer to open positions elsewhere on the system.

The affected facilities are primarily lower-volume shops in locations across all nine of our operating divisions. They include:

Montgomery, Ala.;
Washington, D.C.;
Baldwin, Fla.;
Indianapolis (Hawthorne) and Evansville, Ind.;
New Orleans, La.;
Detroit and Grand Rapids, Mich.;
Wilmington, N.C.;
Kenmore, N.Y.;
Ashtabula, Ohio;
Erie and Pittsburgh (Glenwood), Pa.;
Florence, S.C.;
Richmond, Va.; and
Huntington, W.Va. 

Train operations through the affected areas will continue as normal, and we will continue to deliver the high level of safety and service that is expected. 

The actions taken today are consistent with our business strategy, which is centered on supporting customers through excellent service and driving business growth by becoming more efficient and productive. By lowering costs in response to business changes, we can continue to invest in our network and capitalize on growth opportunities. As difficult as these decisions have been, they were necessary to position CSX for long-term success.

I know I can count on each of you to reach out to any affected employees you may know and offer words of support and encouragement. They have performed their jobs well, and they have earned the respect and gratitude of all of us. Please join me in wishing them all the best.

Sincerely,

Gery Williams
Vice President, Mechanical