03:09 PM EDT, 05/03/2024 (MT Newswires) -- (Updates with Norfolk's comments in the fifth and sixth paragraphs, and with stock move in the seventh paragraph.)

Norfolk Southern ( NSC ) shareholder Ancora on Friday disclosed a letter from proposed Norfolk Chief Executive Jim Barber suggesting a plan for about $1.1 billion in annualized savings at the company.

Former UPS Chief Operating Officer Barber is one the seven candidates that the activist shareholder is trying to elect to Norfolk's 13-member board at the annual meeting on Thursday, Ancora said.

Barber said in the letter that, under his proposal, a redesigned Norfolk network would "benefit from a permanent reduction in assets, delays and touch points."

"As assets come out of the network, we will rely on annual attrition (not job cuts or furloughs) to right size our workforce," Barber said. "All of this should ultimately translate to approximately $1.1 billion in annualized savings and an operating ratio in the mid-to-high 50s."

A "change in leadership at Norfolk Southern ( NSC ) would be highly disruptive to our operations, our workers, and the North American supply chain," a Norfolk spokesperson told MT Newswires.

"The pursuit of a reckless and short-sighted strategy would upend the execution of our balanced strategy that is providing safe service, enhancing productivity, and driving smart growth," the spokesperson said.

Norfolk shares were rising almost 1% in recent trading.

Price: 235.83, Change: +2.03, Percent Change: +0.87