Canadian Pacific Railway plans to cut 1,000 positions

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The Associated Press

TORONTO: Canadian Pacific Railway Ltd. says it will cut 1,000 jobs and slash spending by US$279 million (CA$400 million) this year as it adjusts to lower shipment volumes and falling commodity prices.

The Calgary-based company said Thursday that most of the cuts to union and management positions will result from attrition and kick in by mid-year.

The railway has cut 6,000 to 7,000 positions since 2012. The company in the past year has cut 12 per cent of its workforce and now employs 12,800 people in its Canadian and U.S. operations.

The railway had US$4.69 billion (CA$6.71 billion) in revenue and $US94 billion (CA$1.35 billion) in net income in 2015, which still fell below analyst expectations.

CP’s share price on the TSX fell by about 5 per cent after Thursday’s earnings were released.