The New South Wales Government has announced that nearly 700 jobs will be cut from Railcorp when it is split into two separate operators - Sydney Trains and New South Wales Trains - next July.
In May this year, the government announced plans to divide Railcorp and has today released a new organisational structure for staff consultation.
The plan would see 240 back office positions axed by July and 450 maintenance jobs cut over three years.
It is the latest in a series of public sector job loss announcements by the O'Farrell Government.
There were also 740 middle-management redundancies offered in Railcorp earlier this year.
Earlier, the Australian Services Union said the government should also explain any plans to cut staff at train stations, after advertisements were place for project managers to review staffing at 116 Sydney stations.
But Transport Minister Gladys Berejiklian says there will be no reduction in the number of station staff, drivers or guards.
"There are about 1860 station staff today and there will be that exact same number beyond 1 July," she said.
The minister says station roles will change so that more staff are on the platform helping customers instead of in offices filling out paperwork.
She says station staff will be trained to fix minor incidents which plague the network, like doors being stuck or minor signal errors.
"At the moment station staff have to wait for people to wait for people to arrive from elsewhere to fix those minor incidents," she said.
"Under our new reform staff will be equipped to fix those minor incidents themselves." The Transport Minister says there has been too much duplication in maintenance and the way its carried out needs to be reformed.
Today's announcement has been welcomed by Infrastructure Partnerships Australia.
The industry group says the reduction of staff is a sensible move to begin trimming the fat out of the railways.
It says it the operational changes will empower station staff to deal with problems more quickly and keep the network moving.
The group has repeated its call for the government to consider franchising the rail services.
However, the State Opposition says the cuts will be a disaster for commuters.
Its transport spokeswoman Penny Sharpe says the decision makes no sense.
"Four hundred and fifty maintenance staff we rely upon every day to make sure that that train turns up at the start of the shift and means that its clean, safe and ready to go.
Four hundred and Fifty staff is too many to lose across the network," she said.
"Two hundred and forty staff - while there is so little detail given today, it's hard to make a full judgement on that - but what is clear is that there are concerns about safety staff going, risk staff going and less incident management." Unions say they will fight the cuts.
Mark Lennon from Unions NSW says it is illogical to cut staff if you are trying to improve maintenance or customer service on the network.
"These are ad hoc decisions they're making and like all governments, and particularly conservative governments, they think the answer to improving reliability and service is simply to remove workers from the system," he said.
"Well there's probably been over 20,000 workers to go from this system in the last two decades and the travelling public are still waiting to see the improvements in reliability and service they have been promised."