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MTA reorganization could save $530M a year, cut 2,700 jobs and more

The MTA reorganization plan, if approved, could lead

The MTA reorganization plan, if approved, could lead to 2,700 job cuts. Photo Credit: Getty Images/Spencer Platt

The MTA is full of improvement plans — the Subway Action Plan, Bus Action Plan and the Fast Forward plan, to name a few — and now there’s a plan to revitalize the beleaguered transit authority from within.

The MTA board on Wednesday voted in favor of the so-called Transformation Plan, which would reorganize the state-run entity in an effort to minimize its massive budget gap and reduce bureaucracy.

While transit advocates and elected officials alike have been calling for a reorganization of the MTA, some are now expressing concerns that the plan was put together too quickly to be effective.

One MTA board member, however, suggested that the plan that was approved on Wednesday is malleable — subject to change over the next 90 days of review.

While the MTA hammers out the details, here’s a look at the plan, by the numbers.

70,000 people 
are employed by the MTA.

3 goals 
the plan aims to achieve are improving customer service, refining the MTA’s cost-effectiveness and reducing operating costs, MTA chairman and CEO Pat Foye said.

40 back-office groups 
would be consolidated into six departments, under the transformation plan in its current form.

1,900 to 2,700 jobs 
could be cut through consolidating those departments.

3 new executive positions 
would be created: chief operating officer, chief transformation officer and accessibility officer. 

6 to 9 months 
is when the reorganization is expected to begin.

2 years 
is how long it will take to complete the reorganization.

$18 billion 
has been budgeted to actualize the transformation plan.

$4.1 million 
was spent to come up with the plan, which was put together by the management consultant firm AlixPartners. 

$530 million 
could be saved annually over the next three years.

$433 million 
would be the new projected budget gap in 2023, reduced from $1 billion in 2022 with help from the reorganization, a hiring freeze, the latest fare hikes and other cuts.

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