Amtrak announces 450 job cuts to achieve $100m in annual savings

Amtrak, the US public passenger rail provider, has announced plans to cut 450 positions as part of a strategy to reduce annual expenses by $100m.

This decision comes amid uncertainty regarding future financial support from Congress and pressure from the Trump Administration.

The company stated that the job cuts, which include a reduction-in-force process and the elimination of unfilled roles, are expected to contribute significantly to achieving the targeted savings.

The announcement follows a leadership change earlier this year, when Amtrak CEO Stephen Gardner resigned from his position “to ensure that Amtrak continues to enjoy the full faith and confidence of this administration.”

Amtrak president Roger Harris is overseeing operations as the board has yet to appoint a new CEO.

Rail Passengers Association president and CEO Jim Mathews expressed concern over the proposed job cuts.

“Rail Passengers is very concerned that these personnel cuts will hinder Amtrak’s ability to efficiently serve America’s passengers and manage the scores of major construction projects that Congress funded through the Infrastructure Investment in Jobs Act (IIJA).

“We’ve particularly concerned about reports that Amtrak has laid off members of its procurement team and capital delivery team, who are playing a vital role in managing billions of dollars worth of investments that will address the railroad’s crippling state-of-good-repair backlog,” he said.

Elon Musk, who has led a job-cutting exercise at the Federal level, expressed the view that Amtrak should be privatised. He previously campaigned, unsuccessfully, against funding for California’s high-speed rail project.

During his first term, Donald Trump consistently pushed for reductions in funding for the rail service, which received approximately $2.4bn in federal support in 2023.

In 2021, Congress approved $66bn for rail projects under the Infrastructure Investment in Jobs Act (IIJA), with $22bn earmarked for Amtrak over a five-year period, in addition to regular funding.

In March, Congress allocated $2.42bn for Amtrak, covering funding through the end of September.

Mathews stated that the IIJA signifies a significant investment in the revitalisation of the country’s rail network.

He said: “If we abandon this investment less than four years after it was enacted, we will be committing to inefficient and unreliable train services for generations to come.”

Amtrak reported a significant increase in ridership, surpassing pre-pandemic levels for the first time in 2024, with a total of 32.8 million customer trips, marking a 15% rise from the previous year.

Passenger revenue also saw an increase, reaching $2.5bn, up by 9% compared to 2023.

However, the rail operator recorded an adjusted operating loss of $705m for the year ending September 30, 2024, although this figure represents a 9% improvement from the previous year.

Meanwhile, Amtrak has begun major construction at its King Street Yard in Seattle, US, focusing on building a new maintenance facility covering nearly 100,000ft².