On October 30, 2025, Canadian National Railway Co. (“CN Rail”) announced the elimination of approximately 400 management positions across its operations in Canada and the United States. The company described the move as a “difficult decision” made to align staffing with current business volumes amid weaker freight demand and ongoing trade pressures.
According to Reuters, the layoffs represent more than six per cent of CN’s non-unionized workforce. A CN spokesperson confirmed that adjustments were made to reflect the business environment, noting that freight volumes have declined sharply due to tariffs and slower demand in key sectors such as steel, aluminum, and automotive parts.
Additional reporting by Yahoo Finance Canada highlights that CN Rail’s freight traffic has been negatively affected by tariffs imposed by both the U.S. and Canada. The company’s move follows similar cost-cutting efforts across the North American transportation sector as rail operators face declining volumes and increased competition.
Severance Packages for CN Rail Managers
These job cuts primarily affect non-unionized management employees, meaning those affected do not have collective agreements outlining their termination rights. As a federally regulated employer, CN Rail is governed by the Canada Labour Code rather than provincial employment standards legislation.
However, under both the Canada Labour Code and Canadian common law, many affected managers may be entitled to significantly more severance pay than what is initially offered.
Severance entitlements depend on several factors, including:
- Length of service – Employees with long tenure typically receive greater severance.
- Age – Older workers often qualify for higher severance due to the greater difficulty of finding comparable employment.
- Position and responsibility – Senior managers are entitled to longer notice periods due to the specialized nature of their roles.
- Availability of comparable employment – If few equivalent positions exist in the market, courts may award higher severance.
Employers frequently offer packages that fall below what employees are entitled to under common law. Before signing any documents, affected CN Rail managers should have their severance offer reviewed by an employment lawyer to ensure it meets their full legal entitlements.
Wondering what you’re owed? Use our Severance Pay Calculator to estimate your potential entitlement based on your age, tenure, and role.
Potential Issues With CN Rail Termination Packages
Layoff and termination packages from CN Rail may raise several legal concerns:
- Insufficient notice or pay in lieu – Some offers may not meet the reasonable notice required under Canadian common law.
- Misclassification as “temporary layoffs” – Non-unionized employees under the Canada Labour Code are often entitled to full severance if their roles are eliminated.
- Exclusion of bonuses or benefits – Employers must include all forms of compensation, such as performance bonuses or stock options, in severance calculations.
- Pressure to sign quickly – Employees should never feel pressured to accept an offer without proper legal review.
Wrongful Dismissal and CN Rail Layoffs
CN Rail employees may have a wrongful dismissal claim if they were:
- Not provided adequate notice or severance pay under common law,
- Terminated under circumstances suggesting unfair or arbitrary treatment, or
- Pressured into signing an unfair release.
A successful wrongful dismissal claim can help recover additional compensation, including lost bonuses, benefits, and other entitlements that were not included in the original offer.
How Monkhouse Law Employment Lawyers Can Help
At Monkhouse Law Employment Lawyers, we have extensive experience representing employees affected by major corporate restructurings and mass layoffs at federally regulated employers, including Air Canada and Canada Post.
Our team can assist by:
- Reviewing CN Rail severance packages and release forms,
- Negotiating to maximize compensation, and
- Representing employees in wrongful dismissal claims if terminations were not handled lawfully.
Contact Us for a Free Consultation
If you were part of CN Rail’s recent layoffs, don’t sign anything before understanding your rights. You may be entitled to significantly more than what was offered. Contact Monkhouse Law Employment Lawyers today for a free 30-minute phone consultation and let our experienced team help you secure the compensation you deserve.