Thursday 2 Oct 2003


Region & Route:
Network Rail has today informed employees of its plans to reduce the number of senior and middle managers at head office and in the regions by 15%.  This forms part of the previously announced programme  to reduce headcount by 2000 over three years.  Headcount reductions are part of Network Rail’s Efficiency Improvement Programme to deliver 20% efficiency savings (£1.3 billion) within three years. The headcount reduction will affect approximately 600-700 people and will deliver savings of £25m-£30m per annum. In order to minimise uncertainty, this process will take place over the next six weeks.   Only management grades are affected, with front-line and operational employees not covered by these plans. Chief Executive of Network Rail, John Armitt, said: “The implementation of this programme will be difficult for those who will leave the company, but is essential for the future of the railway.    Network Rail inherited a cost base which is too high and which must be reduced.  These staff reductions are a vital part of our drive to improve efficiency. “The reductions are entirely focussed on management and will not affect front-line operations.  For this reason, I am able to confirm that these reductions will have no effect on safety standards or our punctuality improvements targets.”

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We own, operate and develop Britain's railway infrastructure; that's 20,000 miles of track, 30,000 bridges, tunnels and viaducts and the thousands of signals, level crossings and stations. We run 20 of the UK's largest stations while all the others, over 2,500, are run by the country's train operating companies.

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