MTA Plans To Railroad 1,000 Employees MTA Chief Jay Walder Says Tuesday's Layoffs Just Part Of The New Way Of Doing BusinessNEW YORK (CBS) 53;
Budget cuts are taking a new toll on the Metropolitan Transit Authority. More than 1,000 layoffs, including many top managers, are expected as the agency strives to cope with dwindling revenue in the tough economic times.
The painful cuts will help the agency save $50 million as it seeks to cope with a sea of red ink.
It's all part of a top to bottom review of the agency by new MTA Chairman and CEO Jay Walder. He seemed to foreshadow the cuts during a speech to the city's movers and shakers in January.
"I cannot tell you that the MTA is spending every dollar that it receives as effectively as possible and I believe that fixing that needs to be my top priority," Walder said on January 15.
An MTA spokesman said the cuts will include 600 administrative employees, some very high up, from all the agencies various branches. Up to 500 subway station agents are in danger as well.
The plan to cut the station agents is getting the biggest howl of protest. The Transport Worker's Union says the agents are an additional security force, and to cut them as homegrown terrorist Najibullah Zazi admitted to a plot to bomb city subways is the wrong move.
"I think it's horrendous. I mean in today's times when we stay at orange alert constantly we would imperil the citizens of the city by taking away the eyes and ears to operating the subway system, it's unconscionable," said TWU VP Maurice Jenkins.
Transit riders, already facing dramatic cuts to bus and subway service, are none too pleased by the move.
"I think it's a bad idea. There's a lot of crime and there's nobody to give directions and I'm concerned about my wife because she rides the subways a lot," said commuter Fernando Iglesias.
"It seems to me it's a bad idea if only with respect to the fact that on occasion we need help with security to help foreigners get around," said Park Slope resident Andrew Taggart.
In a statement released before noon on Tuesday, Walder said that Tuesday's layoffs are "just the beginning of a comprehensive overhaul of how the MTA does business."