By David Shepardson
WASHINGTON (Reuters) -U.S. passenger railroad Amtrak said on Wednesday it is eliminating 450 positions as it aims to cut annual costs by $100 million as future support from Congress remains uncertain.
Amtrak said through a reduction-in-force process, and cutting of open positions, Amtrak has cut 450 roles that, combined with other recent cost cuts, “will help Amtrak save $100 million annually.”
WHY IT MATTERS
The changes come after the White House in March forced Amtrak CEO Stephen Gardner to step down after President Donald Trump sought the changes. Amtrak’s board has not named a new CEO, but Amtrak President Roger Harris is currently running operations.
Billionaire Elon Musk, who is advising Trump on plans to radically shrink the U.S. government, said in March he thought Amtrak should be privatized.
CONTEXT
Trump, during his first term, repeatedly sought to cut funding to Amtrak, which received about $2.4 billion in annual federal support in 2023. Congress in March approved $2.42 billion for Amtrak through September 30 in annual funding.
Amtrak said in December ridership topped 2019 pre-COVID-19 levels for the first time in 2024, reaching a record high even with less capacity.
Ridership increased over 15% in 2023 to a record 32.8 million customer trips, as passenger revenue hit $2.5 billion, up 9% over the prior year. The rail operator reported an adjusted operating loss of $705 million for the 12 months ended September 30, 2024, down 9% versus 2023.
Congress approved $66 billion for rail projects as part of a massive infrastructure bill in 2021, with $22 billion dedicated to Amtrak over five years on top of regular funding.
(Reporting by David Shepardson; Editing by Chris Reese and Edward Tobin)
