Deutsche Bahn’s new CEO, Evelyn Palla, has begun implementing the corporate restructuring she announced earlier. Starting January 1, the company’s executive board will be downsized, and the top management levels below it will be nearly halved, Palla said on Thursday in Berlin. The goal, she explained, is to ensure that decisions are made “where the railway actually operates.” She asked for patience regarding noticeable improvements in punctuality.
The executive board will in the future consist of only six departments. Below the board level, Deutsche Bahn plans to eliminate an entire intermediate layer between the executive board and the first leadership level. The first leadership level will be reduced from 43 to 22 organizational units, significantly decreasing the number of managers.
“We are making Deutsche Bahn leaner, faster, with fewer departments, fewer units, and more decentralized structures,” Palla said. Deutsche Bahn comprises the parent company and dozens of subsidiaries. According to Palla, the parent company itself will be significantly streamlined. “It is important that operational responsibility lies exclusively with the business units,” she added. Managers there are expected to make decisions and be accountable for them.
Deutsche Bahn is currently facing a deep crisis. Much of the infrastructure is worn and prone to disruptions, and punctuality has suffered, particularly in long-distance travel and increasingly in regional services. Palla, who has been at the helm since early October, referred to years of underinvestment that are now taking their toll. These shortcomings cannot be fixed “overnight,” she said, and punctuality is therefore unlikely to improve significantly next year.
Initially, the focus is on stabilizing the downward trend, Palla said. “We see a clear acceleration in the aging of the infrastructure. As long as tracks, rails, and overhead lines deteriorate faster than I can counteract, punctuality will not improve,” she added.
Punctuality in long-distance services fell sharply at the start of the year. On average so far, it was just under 60 percent, with figures sometimes significantly lower over the past six months. For the coming year, Palla is targeting a punctuality rate of 60 percent, meaning three out of five long-distance trains should arrive with less than six minutes’ delay.
Despite these challenges, improvements for customers are planned. Deutsche Bahn intends to invest €140 million in “a better customer experience,” Palla said. Focus areas include stations, which will become cleaner and safer, with new lighting, better passenger information, and more comfort on trains. The long-distance onboard bistro service will also be made more reliable.
On the financial side, Palla promised improvements. She expects business targets to be exceeded this year and next. However, she cautioned that this does not mean the company will become profitable immediately. A return to a balanced budget is not expected before 2027.
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