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Consulting group AlixPartners released a new report stating that the new reorganization plan may leave thousands out of work, while saving the MTA upwards of $350 to $500 million annually. It would be the MTA's first significant round of layoffs since 2010.
Under the plan, as many as 1,900 to 2,700 jobs may be eliminated, including some through mass layoffs - though officials note the process could take at least two years to implement. The proposal represents approximately a 4 percent decrease in the MTA’s workforce.
Transit officials noted the MTA faces an operating deficit of nearly $1 billion by 2022.
The reorganization "will prepare the agency to dramatically improve service, end project delays, and cost overruns, and finally establish the modern system customers deserve," the MTA said. The “MTA Transformation Plan” promises an “elimination of redundancies, reduction of layers and streamlining of processes.
"Today is the beginning of a new, modern MTA - one that delivers better service, completes projects on time and on budget, and uses its resources effectively and efficiently," MTA Chairman and CEO Patrick J. Foye said in a statement.
"Make no mistake about it, this transformation will allow us to finally give our customers the system they deserve, and prepares us to execute on what is likely to be the biggest capital plan in MTA history.”
The MTA Board is planning to vote on the reorganization plan next week, on Wednesday, July 24.
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