Greyhound to Close 35 of Its U.S. Terminals : Reduction Includes Its Facility in Long Beach

Greyhound Lines said Wednesday that it is closing one-third of its bus terminals across the country, including its 25-year-old terminal in Long Beach, as part of a continuing cost-cutting effort brought on by declining passenger traffic.

The Phoenix-based bus company said that it will close 35 of its 125 terminals nationwide by Oct. 1 and that the 393 employees affected will probably be laid off. The company said it expected to receive between $100 million and $150 million through the eventual sale of the terminals. The firm’s parent, Greyhound Corp., reported net income of $120 million in 1985.

In Long Beach, about 12 Greyhound employees would be affected, said James Cushing-murray, president of Local 1222 of the Amalgamated Transit Union. He said Greyhound told him that the Long Beach terminal will be closed by June 1.

Long Beach municipal officials said the terminal, located at the corner of 1st Street and Long Beach Boulevard, was expected to eventually close because it is part of a proposed $70-million redevelopment project that includes office and entertainment space.

Long Beach, which had planned to buy the terminal from Greyhound, might now be spared the expense of finding Greyhound a new terminal location, said Bob Paternoster, Long Beach city planning director.

Greyhound said it did not plan to eliminate any routes as a result of the terminal closings. The company said it would maintain bus service from independently operated facilities located near highways or in suburbs.

The closings are part of a previously announced restructuring program that includes a reduction of between 1,500 and 2,000 jobs, possible elimination of Greyhound’s charter bus service and the discontinuance of some routes. The company has already eliminated about 400 management jobs.

‘60s Era Network

A spokeswoman said the company’s terminal and route network was designed for the late 1960s, a period when the company transported about 65 million passengers yearly. Last year, Greyhound transported 31 million passengers.

The company has lost customers to regional discount airlines, which offer faster travel and sometimes cheaper fares.

The company said that the terminals scheduled to close were the most expensive to operate and that it may eventually close as many as 50 terminals. In some locations, terminal costs consumed 70% of revenue from ticket sales, the firm said.

Cushing-murray contended that the Long Beach terminal was profitable and that it generated $2 million in sales yearly.

The company recently set up a separate charter bus company, Greyhound Travel Services, that may eventually replace the charter service operated by Greyhound Lines.

Cushing-murray said Greyhound Lines planned to eliminate union jobs by replacing Greyhound Lines’ charter service with the new Greyhound Travel Services, which hasn’t begun operations.

However, the Greyhound spokeswoman said no decision has been made and “we may operate them both.” Other Greyhound terminals closing in California are in Redding, Stockton, Redwood City and Vallejo.