Move will relocate 500 of 1,700 area positions out of area
by William C. Vantuono, editor-in-chief, Railway Age
Norfolk Southern on Jan. 27, 2015 said that it will close its Roanoke office building at 110 Franklin Road SE later in the year and relocate the functions currently housed there to Atlanta, Ga., or its Norfolk, Va., headquarters. The move will affect about 500 of the 1,700 people work currently work for NS in Roanoke.
Roanoke will remain the headquarters for NS’s Virginia Division, and the railroad will continue operating a local switching yard and locomotive and car maintenance facilities at Shaffer’s Crossing, and a locomotive overhaul and rebuilding facility in its East End Shops.
The functions to be relocated include marketing, accounting, information technology, and other departments. Affected employees will have the option of relocating with their positions. “This will not involve any involuntary force reductions, and we will provide substantial relocation packages for those who choose to relocate,” said NS President James A. Squires. “Norfolk Southern has been a proud corporate citizen of Roanoke for more than 130 years, and that will not change. While our profile may be reduced, Roanoke will remain a key location in our network, and we will remain engaged in the community.”
“The action is being taken to foster departmental synergies and to make better use of the company’s real estate assets and support the company’s goal of streamlining its management workforce,” NS said. “Norfolk Southern is in the final process of evaluating which positions will be relocated to its corporate headquarters in Norfolk, Va., or its operational headquarters in Atlanta, GA. Some regionally oriented positions will remain in Roanoke but will move to other work locations in the area.”
The Roanoke office building was built in 1992 and consists of 203,000 square feet of office space. NS said that disposition of the building will be determined at a later time.
City Manager Chris Morrill responding to the recent developments said. “We regret that these employees and their families may have to leave the scenic beauty, friendly community, and quality of life that have attracted so many people to Roanoke.”
The city’s leadership understands that in today’s corporate world, large companies often have to make decisions that benefit their shareholders and impact their efficiency of operations. In addition, corporate restructuring and office closings occur often and local economies must adjust to this business reality.
“During the past 20 years, Roanoke has prepared for changes such as this by diversifying our local economy to move away from dependence on any one sector,” says Wayne Bowers, the city’s director of Economic Development. “According to Moody’s Investor Services, Roanoke is the second most diverse economy in Virginia. An economy diversified in healthcare, technical services, regional retail, tourism, education, and research is better prepared to respond to a significant job reduction by a major employer such as Norfolk Southern. Much of our economic development efforts for the future will be directed to expanding the presence of technology and entrepreneurial companies in Roanoke.”
The City of Roanoke will continue working with its regional partners to promote a diversified economy and welcomes the opportunity to assist Norfolk Southern in identifying a reuse of this property. The city will also work with the Western Virginia Workforce Development Board and the Virginia Employment Commission to assist any Norfolk Southern employees who would like to look for other employment opportunities in the Roanoke area.
“Norfolk Southern has operated in Roanoke for more than 130 years and the city looks forward to the Company’s continuing presence in our community as the headquarters for Norfolk Southern’s Virginia Division,” says Roanoke Mayor David Bowers. “The Company plans to continue several key business functions including the Shaffer’s Crossing maintenance facilities and the East End Shops in Roanoke providing approximately 1,200 jobs for our citizens.”
