I sat across from Nadia Khouri, who had just cleaned out her desk at CN Rail’s Montreal headquarters, as she stirred her coffee with a deliberate precision that betrayed her shock. “Twenty-two years,” she said. “I never thought I’d see the day when global trade tensions would cost me my job.”
Khouri is one of approximately 400 management employees let go by Canadian National Railway this week in what the company described as “necessary organizational adjustments” amid declining shipping volumes. The cuts represent nearly 8% of the railway’s management workforce and come at a pivotal moment for Canada’s largest rail carrier.
“This difficult decision reflects prolonged volume challenges triggered by international trade disruptions,” said CN Rail CEO Tracy Robinson in a statement yesterday. “The current tariff environment has reduced cross-border freight demand significantly below our projections.”
While industry observers had anticipated some belt-tightening at CN, the scale of the cuts surprised many. The layoffs touch multiple departments but predominantly affect operations and logistics management positions across the company’s Canadian network, with the heaviest impact at headquarters and regional offices.
The immediate trigger appears to be the cumulative effect of increased tariffs between the United States and several trading partners that has dampened cross-border shipping demand. Rail carriers often function as economic bellwethers, with their fortunes directly tied to industrial production and consumer spending.
Statistics Canada data released last week shows that rail cargo volumes have declined 14% year-over-year, with cross-border shipments down nearly 23%. These figures align with broader economic indicators suggesting Canada’s export sector is struggling to navigate the increasingly complex trade landscape.
“What we’re seeing at CN is potentially just the beginning,” explains Dominic Chang, transportation analyst at RBC Capital Markets. “Railway operations have high fixed costs, so when volume drops, management positions are often the first to go as companies try to maintain operational efficiency.”
For affected employees like Marcus Belanger, a 15-year veteran who managed intermodal operations in Toronto, the news came as both a shock and a validation of concerns that had been building.
“We’ve watched the container counts dropping for months now,” Belanger told me. “When you see fewer trains running and yards less busy, you start to worry. But the speed of this decision caught many of us off guard.”
The layoffs reflect broader challenges facing North America’s freight rail industry. BNSF and Union Pacific, two major U.S. carriers, announced similar workforce reductions earlier this month, citing parallel concerns about decreased shipping demand. The industry collectively has shed over 1,500 positions since August, according to American Association of Railroads data.
Financial analysts note that CN Rail’s move comes after two consecutive quarters of disappointing earnings. The company reported a 9% decline in revenue in Q3 2025 compared to the same period last year, with particularly sharp drops in automotive parts, consumer goods, and grain shipments.
“CN is operating in an environment where both cyclical and structural forces are applying pressure,” says Faisal Ahmad, economist at the Conference Board of Canada. “The cyclical downturn from tariffs is obvious, but we’re also seeing some permanent shifts in supply chains as companies prioritize resilience over efficiency.”
The layoffs have sparked concern among transportation unions, though the cuts have thus far been limited to non-unionized management positions. Teamsters Canada Rail Conference, which represents CN conductors and engineers, released a statement expressing solidarity with affected colleagues while noting concerns about potential operational impacts.
“When you reduce management oversight by this magnitude, it raises questions about how safely and efficiently the network can operate,” said TCRC President Lyndon Isaak. “Our members remain vigilant about how these cuts might affect frontline operations.”
For communities heavily dependent on rail employment, the cuts represent a significant economic threat. In smaller centers like Jasper, Alberta, and Sioux Lookout, Ontario, CN Rail remains a primary employer and economic driver.
Mayor Sonia Blackwell of Sioux Lookout described the news as “another blow to our community’s economic stability” and expressed concern about potential downstream effects on local businesses. The town has already seen its rail workforce decline by nearly 40% over the past decade.
The timing of these cuts – just weeks before the holiday shipping season begins – suggests the depth of CN’s concerns about shipping volumes. Traditionally, railways add capacity in the fourth quarter to handle increased consumer goods movement.
“This doesn’t bode well for the retail sector’s holiday outlook,” notes Sandra Ketchen, retail analyst at Desjardins. “When railways cut staff ahead of peak season, it signals they don’t expect the usual surge in shipping demand.”
The federal government has thus far remained relatively quiet on CN’s announcement, though Transport Minister Pablo Rodriguez indicated his department is “monitoring the situation closely” and has been in contact with company leadership.
Industry experts suggest that while immediate job losses are significant, the longer-term economic signal may be more concerning. Railway employment has historically served as a reliable economic indicator, with staffing changes often preceding broader shifts in economic activity.
“Rail carriers see economic changes before they show up in consumer-facing indicators,” explains Mehmet Guney, economics professor at York University. “They detect shifts in raw materials, manufacturing components, and finished goods movement before those changes reach store shelves or economic reports.”
For now, CN Rail indicates it has completed this round of layoffs and doesn’t anticipate further cuts. The company emphasized its commitment to maintaining service levels and meeting customer needs despite the reduced management workforce.
As for Nadia Khouri, she’s already updating her resume, but remains concerned about prospects in an industry facing headwinds. “The railways used to represent stability,” she said. “That era might be ending.”
