KANSAS CITY -- Kansas City Southern Industries Inc. plans to lay off about 170 employees, or 6 percent of the railroad's work force, in response to the recent economic slowdown, reports the Kansas City Star.

The company also is asking 75 midlevel managers to participate in a temporary, voluntary salary reduction program that would trim wages by 1 percent to 3 percent.

As part of the salary cutbacks, chairman and CEO Michael R. Haverty is reducing his annual salary by 15 percent. Three senior vice presidents also are taking 7 percent pay cuts, said Warren Erdman, vice president of corporate affairs.

"Basically, the soft economy has hit home," Erdman said.

Kansas City Southern's work force was notified of the cutback plans Monday morning, but employees probably won't know who will be affected by the layoff until the end of next week, Erdman said.

Approximately 75 managers and 95 union employees are expected to be laid off systemwide. The company has about 260 area workers, but it was too early to know how many will be affected by the reduction, Erdman said.

Kansas City Southern is the latest of several transportation companies to announce layoffs or early retirement programs. Earlier this year, Overland Park-based Yellow Corp. laid off more than 200 salaried workers systemwide. They might be recalled if economic conditions improve later this spring.

"Kansas City Southern is not immune from the economic slowdown that is under way and we, like many others, must realize cost savings now in order to keep our company competitive," Haverty said. "While these reductions are painful, they are necessary and will be done in a way that does not compromise our commitment to customer service."

In addition to salary cuts, Kansas City Southern is temporarily eliminating certain benefits for management workers. They include a one-time suspension of the company's contribution to the employee stock ownership plan, health club memberships, discounts on cultural events and tuition assistance programs.

The cutbacks on salaries and benefits most likely will stay in effect through this year, after which the company will re-evaluate economic conditions, Erdman said.

Kansas City Southern's capital investment in track maintenance and the development of facilities will not be affected by the cost reductions, Erdman said. But the launch of a new computer operating system for the entire railroad will be delayed until next year.

Kansas City Southern did not have an estimate of how much the company will save this year as a result of the cutbacks.

Kansas City Southern's stock closed at $13.20 a share Monday, up 77 cents in trading on the New York Stock Exchange.