T-R FILE PHOTO A Union Pacific Rail Road Co. locomotive approaches a Marshalltown rail crossing near the intersection of South Second Street and Washington Street on June 27, 2017. The company has had a strong presence locally since its merger with the Chicago & North Western Rail Road Co. in 1995.

The Union Pacific Corp. said earlier this week it would cut 475 employees in the fourth quarter and signaled more workforce reductions to come as it seeks to boost profitability by the end of 2020, Reuters reported.

“The cuts will be system-wide as part of an effort to reduce our general support and administrative structure,” Union Pacific spokesperson Kristen South said. “I do not have specific numbers for Iowa.”

The Omaha, Neb.-based Union Pacific has had employees in Marshalltown since 1995, when it merged with the Chicago & North Western Rail Road Co. Staff are stationed at 201 E. Madison St. It is unclear how many Union Pacific employees are in Marshalltown, since the company does not release that information.

Additionally, the Union Pacific’s main east-west rail lines go through Marshalltown.

The transportation company connects 23 states in the western two-thirds of the United States. In April, company leaders warned it was unlikely to achieve its profitability target in 2019 due to service problems and congestion on its rail network.

In a memo, the company said it also would eliminate 200 contract positions. The railroad had 42,114 employees on June 30. The latest staff reductions will be across the network and affect both union and non-union workers. Union Pacific said the cuts are “the first of what likely will be additional workforce reduction initiatives through 2020.”

Union Pacific aims to reduce its operating ratio — a measure of operating expenses as a percentage of revenue and a closely watched gauge of railroad performance — to at least 60 percent by the end of 2020.

Railroads boost profits by lowering their operating ratio.

In a Thursday press release, the company announced record third quarter profits.

“While we reported solid financial results, we did not make the service and productivity gains that we expected during the quarter,” said Lance Fritz, Union Pacific chairman, president and chief executive officer. “However, we are making progress implementing our new Unified Plan 2020 and we are well positioned to drive improvement going forward, I am confident we have the right people and plans in place to improve our operations, provide more reliable service for our customers, and achieve industry-leading financial performance.”