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Union Pacific eliminates management jobs as part of plan to speed decision making at the railroad

FILE - A maintenance worker walks past the company logo on the side of a locomotive in the Union Pacific Railroad fueling yard in north Denver, Oct. 18, 2006. Union Pacific announced Wednesday, Nov. 1, 2023, that it is trimming the ranks of the railroad’s management employees as part of the new CEO’s push to eliminate layers of bosses involved in decisions. (AP Photo/David Zalubowski, File)

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OMAHA, Neb. (AP) — Union Pacific is trimming the ranks of the railroad’s management employees as part of the new CEO’s push to eliminate layers of bosses involved in decision making.

The railroad, based in Omaha, Nebraska, said Wednesday that it is eliminating less than 5% of its roughly 5,600 management jobs.

Everyone who is losing their job was encouraged to either apply for a job helping operate or maintain Union Pacific’s trains or to stay on for several months to help tackle one of about a couple dozen special projects.

Fewer than 275 management jobs were being eliminated, but the final number of cuts will depend on how many managers take other jobs with the railroad.

CEO Jim Vena made streamlining the organization one of his first priorities after taking the job in August.

“You can’t have nine levels from the CEO to the people who actually do the work and expect that the message is clear, the decisions are made clear and there isn’t some hiccup in the decision,” Vena told investors last month. “And I want to drive it so that we have way less layers. And that means with less layers, the people out in the field are empowered to make the right decision.”

A spokeswoman for the railroad said Wednesday that the management layoffs are part of the larger effort to change its culture and “focus on empowering employees on the front lines to drive decision-making.”

Before the layoffs announced Wednesday, Union Pacific eliminated about 100 operating jobs recently in response to a decline in the number of rail shipments with the economy in flux.

But both sets of job cuts represent a relatively small part of Union Pacific’s total workforce of about 33,000. The railroad is one of the nation’s largest, operating more than 32,000 miles (51,499 kilometers) of track in 23 Western states.

These latest cuts are also much smaller than the ones Union Pacific made after it started overhauling its operations in 2018 to rely more on fewer, longer trains that operate on a more set schedule. Before those changes began, the railroad employed more than 44,000 people. Those bigger cuts that UP and all the major railroads made over the past six years have been criticized by labor unions who say they left the workforce spread too thin to keep up with crucial preventative maintenance and inspections. The railroads say the cuts simply helped them become more efficient and they need fewer workers today because they’re using fewer locomotives and railcars to haul a similar amount of freight.

The head of the Federal Railroad Administration questioned the wisdom of the recent cuts of train crews and maintenance personnel in a letter to Vena after federal inspectors found hundreds of problems when they visited Union Pacific’s massive railyard in western Nebraska this summer. Safety has been a concern across the industry after a Norfolk Southern train derailed in eastern Ohio in February, spilled hazardous chemicals and caught fire.

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The 10 Most Popular Articles in 2022 (So Far)

Managers are seeking ways to improve employee well-being and build a strong workplace culture.

• Workplace, Teams, & Culture
• Talent Management
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Year three of a global pandemic. A war in Ukraine. Inflation in the U.S. at a 40-year high. Small talk around the watercooler (mainly the virtual one, nowadays) certainly feels heavier than it used to.

Recent Gallup data indicates that in 2022, companies and managers remain challenged by the task of raising employee engagement to pre-pandemic levels. Nearly half of global workers (44%) surveyed reported feeling “a lot” of stress in the previous day. The Great Resignation has demonstrated the power of employees to vote with their feet, and a resurgence of the labor movement in the U.S. has put pressure on even top-tier companies to improve working conditions.

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Companies that have thrived amid the pandemic and worker reshuffling have focused on worker well-being from the start. Unfortunately, for many employees across the globe, this may be the exception rather than the norm. As Gallup’s Jon Clifton put it, “Improving life at work isn’t rocket science, but the world is closer to colonizing Mars than it is to fixing the world’s broken workplaces.”

To begin to fix these issues, managers must focus on two areas in particular: leadership and culture. In the first months of the year, many MIT SMR readers turned their attention to articles focused on workplace culture, talent management, and employee retention.

With many companies now adopting permanent remote and hybrid work policies, other popular articles include data-driven approaches to managing well-being on virtual teams — from scheduling meeting-free days to creating systems for supporting mental health.

The following are the 10 most popular articles of the year so far. We hope they will continue to help managers who are looking to support employee engagement and build thriving workplaces.

#1 Toxic Culture Is Driving the Great Resignation

Donald sull, charles sull, and ben zweig.

In this article, the authors discuss the top five predictors of employee turnover uncovered by their analysis of attrition data during the Great Resignation and share four actions that managers can take in the short term to improve employee satisfaction.

#2 Top Performers Have a Superpower: Happiness

Paul b. lester, ed diener, and martin seligman.

Research has found that happiness, a sense of well-being, and an optimistic outlook are powerful predictors of how well an employee will perform. Managers who consciously promote employee well-being and take steps to eliminate toxic leadership in their business units will reap the benefits.

#3 The Surprising Impact of Meeting-Free Days

Ben laker, vijay pereira, pawan budhwar, and ashish malik.

Spending too much time in meetings can detract from effective collaboration, derail workers during their most productive hours, and interrupt people’s train of thought. No-meeting policies permit team members to excel without breaking their momentum, but specific plans must be tailored to each unique organizational context to maximize the benefits. The authors suggest several ways to deploy a no-meeting policy or adjust an existing one.

#4 Orchestrating Workforce Ecosystems

Elizabeth j. altman, david kiron, robin jones, and jeff schwartz.

Research conducted by MIT SMR and Deloitte examines the challenges companies and managers face in leading and coordinating workforces that increasingly rely on external contributors.

#5 Why Every Leader Needs to Worry About Toxic Culture

Donald sull, charles sull, william cipolli, and caio brighenti.

According to research, the five most common elements of toxic workplace cultures — being disrespectful, noninclusive, unethical, cutthroat, and abusive — contribute the most to employee attrition and can damage company reputation. Being aware of these elements and understanding how they spread can help employers prevent and address them.

#6 Building the Cognitive Budget for Your Most Effective Mind

Jordan birnbaum.

There’s a limit to how much mental energy is available to us on any given day, so it’s essential that we spend it deliberately and thoughtfully. This article details the process of creating a cognitive budget, using techniques from positive psychology, cognitive behavioral therapy, and behavioral economics.

#7 Stop Telling Employees to Be Resilient

Liz fosslien and mollie west duffy.

When it comes to leadership, there’s a difference between demanding that employees be mentally tough and actually helping them take care of their mental health. The authors suggest five actions leaders can take to create a workplace that supports employees and fosters resilience.

#8 Effective Leaders Decide About Deciding

Nancy duarte.

Categorizing decisions by riskiness and urgency helps clarify when employees should move autonomously and when they should pull leaders into decision-making.

Related Articles

#9 leading change means changing how you lead, b. tom hunsaker and jonathan knowles.

Adapting your leadership approach is necessary for achieving the change your organization requires. The authors discuss three tasks — drawing the map, establishing the mindset, and communicating the message — that are essential to becoming a contextually effective leader.

#10 How Well-Designed Work Makes Us Smarter

Sharon k. parker and gwenith g. fisher.

Work that permits autonomy and demands problem-solving can bolster employees’ cognitive skills and ongoing learning. This article looks at how organizations and managers can use good work design to strengthen their workforce’s ability to adapt to new processes, tools, and roles.

About the Author

Ally MacDonald ( @allymacdonald ) is senior editor at MIT Sloan Management Review .

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• Digital Transformation
• Disabilities
• Dismissing Employees
• Disruptive Innovation
• Diversity and Inclusion
• Economic Cycles and Trends
• Economic Systems
• Emerging Markets
• Emotional Intelligence
• Employee Engagement
• Employee Incentives
• Employee Performance Management
• Employee Retention
• Enterprise Computing
• Entrepreneurial Business Strategy
• Entrepreneurial Exit Strategy
• Entrepreneurial Finance
• Entrepreneurial Financing
• Entrepreneurial Legal Issues
• Entrepreneurial Management
• Entrepreneurs and Founders
• Entrepreneurship
• Executive Compensation
• Experimentation
• Family Businesses
• Finance and Investing
• Financial Analysis
• Financial Crisis
• Financial Markets
• Financial Performance Measurement
• Financial Statements
• Fundraising
• Giving Feedback
• Global Health
• Global Strategy
• Globalization
• Going Public
• Government Policy and Regulation
• Growth Strategy
• Health and Behavioral Science
• Health and Wellness
• Health Care and Treatment
• High Potential Employees
• Human Resource Management
• Human Rights
• Immigration
• Inclusion and Belonging
• Information Management
• Intellectual Property
• Internal Communication
• International Relations
• Internet of Things
• Interpersonal Communication
• Interpersonal Skills
• Investment Management
• IT Management
• IT Security Management
• Job Interviews
• Joint Ventures
• Leadership Development
• Leadership Qualities
• Leadership Styles
• Leadership Transitions
• Leadership Vision
• Leading Teams
• Lean Business Model
• LGBT Rights
• Listening Skills
• Management Communication
• Management Philosophy
• Management Skills
• Management Styles
• Managerial Accounting
• Managerial Behavior
• Managing Conflicts
• Managing Employees
• Managing People
• Managing Up
• Marginalized Groups
• Market Research
• Market Segmentation
• Meeting Management
• Mental Health
• Mergers and Acquisitions
• Mindfulness
• Mission Statements
• Mobile and Wireless Technology
• Motivating People
• National Competitiveness
• Negotiating Skills
• Negotiation Strategies
• Neurodiversity
• Neuroscience
• Nonprofit Organizations
• Office Politics
• Online Communities
• Open Innovation
• Operations and Supply Chain Management
• Operations Strategy
• Organizational Change
• Organizational Decision Making
• Organizational Development
• Organizational Learning
• Organizational Restructuring
• Organizational Transformation
• Parental Leave
• Performance Indicators
• Personal Brand
• Personal Ethics
• Personal Growth and Transformation
• Personal Productivity
• Personal Purpose and Values
• Personal Resilience
• Personal Strategy and Style
• Personnel Policies
• Philanthropy
• Power and Influence
• Presentation Skills
• Pricing Strategy
• Privacy and Confidentiality
• Private Equity
• Process Management
• Product Development
• Product Launches
• Product Management
• Professional Networks
• Project Management
• Psychology and Neuroscience
• Public Relations
• Public Speaking
• Public-private Partnerships
• Receiving Feedback
• Remote Work
• Retirement Planning
• Risk Management
• Sales and Marketing
• Sales Team Management
• Scaling Entrepreneurial Ventures
• Sexual Harassment
• Social and Global Issues
• Social Enterprise
• Social Entrepreneurship
• Social Marketing
• Social Media
• Social Movements
• Society and Business Relations
• Socioeconomic Class
• Strategic Analysis
• Strategic Planning
• Strategy Execution
• Strategy Formulation
• Stress Management
• Succession Planning
• Supply Chain Management
• Sustainable Business Practices
• Talent Management
• Time Management
• Time-off Policies
• Transparency
• Trustworthiness
• Underperforming Employees
• Venture Capital
• Venture Funding
• Virtual Teams
• Web-based Technologies
• Work Environments
• Working Parents
• Workplace Discrimination
• Workplace Health and Safety
• Workspaces Design
• Advertising Industry
• Aerospace and Defense Sector
• Agriculture Sector
• Business Administration and Support Services
• Business Consulting Services
• Business Services Sector
• Construction and Engineering
• Consumer Services
• Education Institutions
• Energy and Natural Resources Sector
• Fabrication and Manufacturing
• Financial Service Sector
• Food and Beverage Sector
• Goods, Trade, and Consumer Services
• Healthcare Sector
• Human Resource Services
• Industrial Sector
• Information Technology and Telecom Sector
• Legal Services Industry
• Marketing Industry
• Media Industry
• Media, Entertainment, and Professional Sports
• Pharmaceutical Industry
• Professional Services
• Professional Sports Industry
• Public Administration and Nonprofits
• Public Relations Industry
• Real Estate Industry
• Retail and Consumer Goods
• Transportation and Distribution
• Travel and Tourism Industry
• Australia and Oceania
• Central America and Caribbean
• Middle East
• North America
• South America

INSTRUCTIONS

• Aims and Scope
• Editorial Board
• Instructions to Authors
• Peer Review Process
• Abstracting and Indexing
• Annual Subscription
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Business Management Review

Business Management Review (BMR) is a semi-annually refereed journal publishing original scholarly research on business and organizational management. BMR is intended to foster research from a variety of business-related disciplines. It is open to, and indeed encourages a wide range of topical issues and emerging methods, conceptual approaches, and substantive problem areas within the domain of business and organizational management. It is devoted to the improvement and further development of theories and practices of business/organizational management and it is designed to appeal to academics, practising managers and policy makers.

Please visit our new website at the following  link (https://bmr.udsm.ac.tz/) .

This Journal issue list can be accessed at the following link http://content.ajarchive.org/cdm4/browse.php?CISOROOT=%2F08562253e

Journal of the University of Dar es Salaam Business School

Address for Correspondence

Chief Editor, BMR                                     

University of Dar es Salaam Business School

P.O. Box 35046, Dar es Salaam

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