Amtrak To Furlough 2,000 Employees By Month's End: Report

WASHINGTON, DC —Amtrak on Thursday said it plans to furlough close to 2,000 employees as the company continues to recoup financial losses caused by the coronavirus pandemic. The layoffs are expected to happen at the end of September, according to a report by the Washington Post citing a memo sent to Amtrak employees this week.

The company previously said in May it would furlough roughly 3,700 employees. Other cost-cutting efforts, including the voluntary departure of more than 500 employees, helped bring down the total number of projected furloughs.

In the memo, Amtrak said it plans to furlough 1,950 unionized workers and 100 management positions. The company said employees who are furloughed between Oct. 1 and Dec. 31 of this year will have their medical benefits extended until Sept. 30, 2021.

The company's revenue has taken a hard hit during the coronavirus pandemic as demand for service plummeted to historic lows.

Ridership eventually rebounded; however, the company estimates ridership may only be at 50 percent of pre-pandemic levels by the Oct. 1 start of the new fiscal year, the Post reported.

Amtrak also announced service changes. Most long-distance trains will operate three times a week instead of daily. The carrier is also planning reductions in train frequencies in the Northeast Corridor, the busiest in its network, and on its state-funded routes.