On Tuesday Jan 27th, Norfolk Southern Railroad President Jim Squires announced that Norfolk Southern Corp. will close its Roanoke office building in downtown Roanoke and move the functions housed there to Atlanta and Norfolk.
According to Squires, this will affect approximately 500 positions associated with those functions, requiring employees to be relocated.
Congressman Bob Goodlatte reacted with both disappointment and a hint of optimism. “There wouldn’t be a Roanoke City if the Norfolk and Western Railway had not chosen Big Lick as their headquarters. In fact, the citizens even offered to name their new town after the president of Norfolk and Western, Mr. Frederick Kimball. Mr. Kimball humbly declined, but there is no question that he and Norfolk and Western contributed significantly to the development of our region. While saddened by this announcement, we appreciate that Norfolk Southern will continue to have a considerable role in the Roanoke Valley.”
“We regret that these employees and their families may have to leave the scenic beauty, friendly community, and quality of life that have attracted so many people to Roanoke,” said City Manager Chris Morrill.
The city’s leadership say they understand that in today’s corporate world, large companies often have to make decisions that benefit their shareholders and impact their efficiency of operations. In addition, corporate restructuring and office closings occur often and local economies must adjust to this business reality.
“During the past 20 years, Roanoke has prepared for changes such as this by diversifying our local economy to move away from dependence on any one sector,” said Wayne Bowers, the city’s director of Economic Development. “According to Moody’s Investor Services, Roanoke is the second most diverse economy in Virginia. An economy diversified in healthcare, technical services, regional retail, tourism, education, and research is better prepared to respond to a significant job reduction by a major employer such as Norfolk Southern. Much of our economic development efforts for the future will be directed to expanding the presence of technology and entrepreneurial companies in Roanoke.”
The City of Roanoke issued a statement saying they will continue working with its regional partners to promote a diversified economy and welcomes the opportunity to assist Norfolk Southern in identifying a reuse of their property. The city said they will also work with the Western Virginia Workforce Development Board and the Virginia Employment Commission to assist any Norfolk Southern employees who would like to look for other employment opportunities in the Roanoke area.
“Norfolk Southern has operated in Roanoke for more than 130 years and the city looks forward to the Company’s continuing presence in our community as the headquarters for Norfolk Southern’s Virginia Division,” said Roanoke Mayor David Bowers. “The Company plans to continue several key business functions including the Shaffer’s Crossing maintenance facilities and the East End Shops in Roanoke providing approximately 1,200 jobs for our citizens.”