Canadian National Railway (CNI) has announced that it is laying off 400 managers as tariffs imposed by the U.S. negatively impact North American freight traffic.
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The Montreal-based company said the managerial cuts impact about 6% of its non-unionized workforce. CN Rail, as the company is known, said the cuts are being made as it adjusts to the current business environment and impacts of U.S. tariffs.
Steep sectoral tariffs of as much as 50% that have been imposed on Canadian steel, aluminum, automobiles, and lumber by U.S. President Donald Trump have hurt shipping volumes and freight traffic between Canada and America, with year-over-year traffic down sharply since the spring.
Q3 Earnings
The layoffs at CN Rail have been announced a month after the company’s chief operating officer abruptly resigned less than two years into the role. News of the decline in freight traffic comes amid mounting evidence that Canada’s economy is slowing under the weight of tariffs.
News of the layoffs also comes as CN Rail reported a third-quarter profit of $1.83 per share, which was ahead of analysts’ estimate of $1.78. Revenue in the quarter totaled $4.17 billion, which was in line with Wall Street forecasts.
Is CNI Stock a Buy?
The stock of CN Rail has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on eight Buy and five Hold ratings issued in the last three months. The average CNI price target of $109.70 implies 12.17% upside from current levels.
