Indian Railways has initiated a manpower rationalisation exercise targeting 29,608 posts for the financial year 2026-27, despite a record capital expenditure allocation of ₹2,93,030 crore (approximately $35.4 billion) for infrastructure development. This rationalisation represents 2% of the total sanctioned strength of 14,80,455 posts as of April 1. The decision comes as part of the annual Memorandum of Understanding (MoU) targets linked to performance agreements. While the restructuring aims to redistribute posts and surrender surplus positions, railway employee unions have raised concerns about the potential impact on job security, particularly in maintenance and safety roles. They argue that the restructuring disproportionately affects lower-level employees and may lead to increased outsourcing. However, railway officials clarify that the exercise is focused on workforce optimisation, with plans to redistribute posts to areas with shortages while surrendering those deemed surplus. They emphasize that this is not a large-scale job reduction, as the railways continue to add more than 15,000 personnel annually.