CSX cuts 109 operations management jobs in engineering restructuring

CSX has eliminated 109 operations management positions in a restructuring of its engineering functions, the railroad confirmed, with the cuts landing on the same day it reports third-quarter earnings.

The Jacksonville-based carrier announced the organizational changes in a statement to FreightWaves. A CSX spokesman said the restructuring was first outlined this past spring.

"[The cuts] are intended to establish a more effective operating structure and better align field support with the needs of the railroad, while maintaining the capabilities necessary to safely operate and maintain the network and serve our customers," the spokesman said.

Who is affected, and what happens next?

The numbers behind the reduction break down into two groups.

• 58 affected employees were offered new roles within operations.
• 51 were offered severance packages.
• Of those offered severance, 75% hold union seniority and may return to craft positions.

That last detail matters for shippers watching service levels. CSX says those returning employees could fill roles in areas where it continues to have vacancies across the network — a signal that the company is shifting headcount from desks toward the field, not simply shrinking its workforce.

"We recognize the impact these decisions have on our colleagues and their families, and CSX is supporting affected employees through the transition," the spokesman said.

Second round of management cuts this year

This is not a one-off. In January, CSX laid off 166 management employees — roughly 5% of its non-union workforce at the time. Combined with this week's action, the carrier has now trimmed more than 270 management positions in under a year.

The January round also touched operations staff more broadly, including furloughed conductors, as the railroad recalibrated staffing against freight demand.

For freight customers and forwarders moving merchandise, intermodal and industrial goods over CSX's eastern network, the pattern points one direction: a flatter management structure, tighter field support, and a leaner overhead base heading into 2026.

Cuts coincide with COO retirement

The restructuring arrives alongside a leadership change. Chief Operating Officer Mike Cory has announced his retirement, and his duties are being reassigned to two current executives rather than handed to a single successor.

The split of the COO role across two incumbents suggests CSX intends to distribute operational accountability more widely — consistent with the same decentralizing logic driving the engineering reorganization itself.

Earnings land the same day

CSX, listed on NASDAQ as CSX, reports third-quarter results after markets close today. Analysts expect a solid quarter.

• Zacks consensus estimate puts revenue at $3.96 billion, up about 10.3% year over year.
• Earnings per share are pegged at $0.53, up roughly 20.5% from last year's adjusted $0.44.

The timing is hard to miss. Announcing headcount discipline hours before releasing double-digit revenue growth frames the cuts as deliberate margin management rather than distress — a message aimed squarely at investors reading tonight's numbers.

For the rail sector at large, CSX's move adds to a season of structural churn, with intermodal volumes climbing and consolidation debates — including Union Pacific's pending merger push — reshaping the western landscape. CSX is signaling it intends to compete on cost discipline and network reliability, not scale alone.

Expect further clarity on staffing and operations strategy when executives discuss the quarter on this evening's earnings call.