CSX Corp. said it is laying off 116 mechanical employees as it streamlines operations at 16 mechanical facilities. The company said it is responding to low rail-cargo volumes.

Some of the impacted workers will be given positions in other parts of the company.

Operations will be reduced at car shops in the South, Midwest and East Coast, including in Detroit and New Orleans.

Railroads are facing competition from trucks, as low fuel prices have made hauling cheaper. Cheaper energy prices have also lead to declines in shipments of coal and metals, such as materials used for energy drilling.

Last month, the company said it was consolidating its administrative operations from 10 divisions to nine divisions and closing its offices in Huntington, West Virginia.

In October, CSX said it would close mechanical shops in Corbin, Ky., in a move that would impact 180 employees.

Write to Austen Hufford at austen.hufford@wsj.com

 

(END) Dow Jones Newswires

February 12, 2016 12:25 ET (17:25 GMT)

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