Railways Targets 2% Workforce Cut in 2026-27, East Coast Zone to Eliminate 1,239 Posts

Railways Targets 2% Workforce Cut in 2026-27, East Coast Zone to Eliminate 1,239 Posts

Indian Railways plans to eliminate around 29,608 posts during 2026-27

CNB WORLD TIMES

Bhubaneswar, 27^th April, 2026: The Railway Ministry has issued fresh instructions to reduce staff strength across zones as part of a nationwide workforce rationalization drive.

The General Manager of the East Coast Railway has been given a target to eliminate 1,239 posts in the current financial year. If posts cannot be removed, employees will be transferred to other locations or departments. The target must be achieved on a quarterly basis.

According to a letter issued by the Railway Board on April 24, the East Coast Railway currently has 61,956 sanctioned posts. Out of this, 2%—or 1,239 posts—must be surrendered during the 2026-27 financial year. Similar directions have been issued to all railway zones across the country.

At the national level, Indian Railways plans to eliminate around 29,608 posts during 2026-27. These cuts mainly target non-essential Group C and D positions that are considered outdated due to modernization and digitization. However, officials have indicated that existing employees will not lose jobs but will be redeployed in other roles.

The move comes at a time when railway infrastructure is expanding rapidly. The budget allocation for the East Coast Railway has increased from Rs 3,000 crore to Rs 10,000 crore in recent years. In Odisha alone, railway projects worth more than Rs 90,000 crore are currently under implementation. New railway lines are being added, and services are being introduced in previously unconnected areas.

Despite this expansion, many railway works are increasingly being outsourced to private companies. Freight and passenger revenue has also reached record levels, raising concerns among employees about growing privatization.

Railway employees have expressed worry over the staff reduction plan. They say that manpower in some sections has already been reduced by half in the last two years, while workload continues to increase. In many cases, retired staffs are being re-employed to manage operations.

Employee unions have demanded regular recruitment to fill vacancies and maintain efficiency. They warn that continued staff cuts could affect project execution and safety if not managed properly.

The current rationalization exercise is part of a broader effort to reduce operational costs, as Indian Railways spends a significant share of its revenue on salaries. However, critics argue that with over 3.5 lakh vacancies still existing across the network, reducing posts instead of hiring may create further strain on the system.