Amtrak’s leadership is exploring ways to cut costs, including evaluating the size of its management team, in response to a political environment seemingly hostile toward publicly funded passenger rail.
On Thursday, Amtrak President Roger Harris emailed employees that the railroad would consider ways to reduce costs in the coming weeks, including cutting the number of management positions within the company. In a statement provided to Railfan & Railroad, an Amtrak spokesperson confirmed that the railroad was indeed tightening its belt.
“Given the current environment, the Executive Leadership Team and the Board have determined that we must act now,” the statement read. “We will do this by examining our costs, including the size of our management staff, in a proactive and controlled way. In addition, we will be more selective in starting new projects and will look harder for efficiencies and innovative ways to address the problems and opportunities we face.”
The railroad did not provide specifics about any potential cuts. However, it seems that at least one management position will remain unfilled, that of former CEO Stephen Gardner. Gardner resigned on March 19 under pressure from the Trump administration. In the week since, Harris has assumed all executive duties, and there has been no indication that the Amtrak board will fill the CEO position.
While Congress has not yet outlined what it plans to appropriate to Amtrak in the next fiscal year, it’s likely to be dramatically less than what it has received in the past — if anything. In 2020, the Trump administration proposed eliminating federal funding for long-distance trains, and more recently, Republicans in Congress have called for eliminating all government support for Amtrak. Earlier this month, billionaire and presidential advisor Elon Musk said the government should privatize the national passenger carrier. Amtrak pushed back on that idea, noting that it was created in 1971 after most private freight railroads gave up on passenger service. —Justin Franz