Media centre

Thursday 2 Oct 2003

NETWORK RAIL STATEMENT - REGARDING HEADCOUNT REDUCTION PLANS

Region & Route:

National

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.”