What Will Happen When The Other Shoe Drops?
FINANCIAL EDGE, RAILWAY AGE MARCH 2020 ISSUE: In its 4Q2019 earnings call, Union Pacific announced a decline in revenue and the laying off of 3,000 employees (layoffs as opposed to furlough). Freight revenue declined 10%; operating revenue declined 5%. Operating expenses declined 12%, thereby decreasing (improving) the operating ratio (OR) to 59.7%. Additionally, UP indicated that the reduction in workforce would bring the total number of employees to roughly 35,000, from roughly 42,000 in 2018.