Alaska Railroad cutting over 50 jobs

The Alaska Railroad passenger train in Whittier, Alaska. (Photo by Ron Reiring/Wikimedia Commons)

The Alaska Railroad is cutting more than 50 jobs in an effort to trim the corporation’s costs as federal grants and revenue decline sharply.

About half of the jobs are already vacant. Christopher Aadnesen is President of the Alaska Railroad. He says the cuts will come from all areas of the company, but more than 1/3 of the jobs lost are in management.

“Maybe the best way to explain it is to give you an example, my direct reports have gone from 13 to 6 and we’ve taken out lots of management positions, many of them senior management positions,” Aadnesen said.

Aadnesen says one of the company’s main revenue sources comes from shipping coal, but the railroad is operating just two coal trains a week, down from four last year, because the international coal market has weakened. Grant funding from the Federal Transit Administration has also declined sharply. Combine that with an unfunded federal mandate to implement a new safety system and Aadnesen says it adds up to a $45 million hit to the corporation.

Besides the job cuts, Aadnesen says the railroad is trimming millions of dollars by conserving fuel, changing the way it maintains vehicles, and reforming other out of date practices.

“So we have changed the company so it looks very different from the inside, but shouldn’t look different from the outside, to passengers, freight shippers, the public, hoping that as we go forward we will be nimble enough and lowered the cost base of the company enough where we can weather additional storms that may come along while we look for and hope for revenue increases to come back to get us out of this challenge,” Aadnesen said.

Since 2009, the railroad has cut nearly 300 positions out of a workforce of about 900 employees.

Recent headlines

  • Computer problems for some - extended coffee break for others: Some employees of the Dept. of Commerce, Community and Economic Development, Financial Services Division in the State Office Building in Juneau drink coffee near their disabled computers March 22, 2017. The workers, who chose to not be identified, said that some computers were working while others were not as a result of a statewide technical problem within the state's system. (Photo by Skip Gray/360 North)

    Software update locks thousands of state workers out of computers

    Roughly 6,000 state workers were unable to log in to their computers, affecting two in five executive branch workers.
  • The top of the Raven Shark totem pole lies in Totem Hall at Sitka National Historical Park. (Photo by Emily Russell/KCAW)

    After 30 years, Raven Shark pole back in Sitka

    The totem pole is an icon of the Pacific Northwest. The carved art form showcases clan stories and family crests in museums around the world. After more than 30 years in the Anchorage Museum, a century-old pole from Southeast has made it back to Sitka, where curators are prepping a permanent home.
  • Longtime leader Rosita Worl to leave Sealaska board

    One of the Sealaska regional Native corporation’s longest-serving leaders is stepping down. Rosita Worl says she will not run for another term after 30 years on the board.
  • U.S. Sen. Lisa Murkowski, R-Alaska, speaks to reporters in one of the Senate’s more ornate rooms. (Photo by Liz Ruskin/Alaska Public Media)

    Murkowski at odds with Trump’s call to end NEA funding

    President Donald Trump’s budget outline calls for eliminating funding for the National Endowment for the Arts. The NEA has been a frequent target of Republicans, but U.S. Sen. Lisa Murkowski supports the endowment, and Tuesday she won the 2017 Congressional Arts Leadership Award.