Union Pacific to Cut 2,000 Jobs, Miss Forecasts

Union Pacific Corp., owner of the largest U.S. railroad, said it will cut 2,000 management and union jobs, or 4% of its work force, and it anticipates fourth-quarter profit will fall short of analyst forecasts. The company expects to take a charge of $70 million in the fourth quarter as a result of the cuts, which will be made by firings, attrition and early retirements. Citing rising fuel prices, harsh winter weather and growing signs of an economic slowdown, the Omaha, Neb.-based company said it expects fourth-quarter earnings of 87 cents to 90 cents a share, less than the average estimate of 93 cents in a First Call/Thomson Financial analyst poll. It earned 95 cents in the year-earlier period. Union Pacific and other railroads have reported declining shipments of several products this month. Union Pacific’s job cuts will be done in the first half of next year, and more details will be released next month, a spokesman said. Union Pacific shares closed at $52.63, up $1.44, on the New York Stock Exchange before the news was announced.