Norfolk Southern to consolidate Virginia units to cut costs
(Reuters) - U.S. railroad operator Norfolk Southern Corp (NSC.N: Quote), which has repeatedly rejected Canadian Pacific Railway Ltd's CP.TO takeover bid, said it will consolidate its Virginia and Pocahontas units, to cut costs and support growth.
The company said on Tuesday the two units will be consolidated to form a new Pocahontas division on Feb. 1.
Norfolk said the move will affect management and staff positions based in Bluefield, West Virginia, but did not detail the number of employees who would be impacted.
The company also said it was idling parts of its West Virginia Secondary, a 253-mile railway line between Columbus, Ohio, and central West Virginia due to steady declines in business in recent years.
Norfolk has rejected Canadian Pacific Railway's multiple bids over the last month, saying the offers were "grossly inadequate".
(Reporting by Anet Josline Pinto in Bengaluru; Editing by Siddharth Cavale)
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