Railroad giant Kansas City Southern Industries has announced a cost-reduction plan that will result in a total workforce reduction of about 170 employees. The layoffs will affect both management and union employees.
The company will also implement a voluntary, temporary annual salary reduction for middle and senior management and temporarily suspend certain benefits for its management employees. The voluntary management salary reduction will ask mid-level management to accept a temporary reduction of their annual base salary.
Each of the senior vice presidents have agreed to a voluntary reduction of 7% and company chairman, president and CEO Michael R. Haverty will reduce his annual salary by 15%.