After being on the job for a scant six weeks, CTA President Forrest Claypool already has cut 54 non-union jobs, saving about $7.6 million in salaries and benefits.
And that's just a start.
Claypool yesterday announced a total budget whack of $15 million annualized. And of those 54 jobs cut, 26 were manager-level positions. The job cuts also represent a 10 percent reduction in senior management. All but three of the 54 jobs were vacant.
In doing some "back-of-the-napkin" math, I estimate that the average annual salary of those 54 jobs was about $108,000.
How do I get that figure? Divide the $7.6 million by the 54 job cuts and you get nearly $141,000 in salary and benefits. Assuming CTA spends the industry average of about 30 percent of total compensation on benefits, each job paid about $108,000 annually.
That's a nice salary.
More from the CTA press release:
Additional savings of $900,000 in labor and benefit costs will be
achieved by delaying hiring for open positions that have been deemed
necessary. A reduction in materials, utilities and contractual services
expenses will further reduce costs for 2011.
year's budget to begin making cuts," said CTA President Forrest
Claypool. "By reorganizing and streamlining, we gain immediate savings
with no adverse effect on the current level and quality of service
provided to customers."