(BRK.A), (BRK.B)
With declining coal volumes, BNSF Railway has begun layoffs and facilities closures.
Through May 2, year-to-date coal volumes are down 16.4 percent, as compared to 2019. Total carloads including intermodal are down 9.90 percent.
The Class 1 railroad announced that 344 positions were being eliminated. The positions were in the company’s mechanical facilities. Some employees will have the option of accepting positions in other locations and will receive relocation packages and the ability to exercise seniority as per bargaining agreements.
Two BNSF facilities in Wyoming will close permanently this summer with Donkey Creek set to close on June 5 and Guernsey closing July 7.
The company is also closing facilities in Kansas, Montana, Nebraska, and North Dakota.
© 2020 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock.