Germany’s national railway operator, Deutsche Bahn (DB), is planning to cut thousands of jobs at its freight subsidiary, DB Cargo. “The restructuring plan currently on the table provides for around 6,000 fewer positions at DB Cargo,” the company said on Thursday. According to DB, the supervisory boards of both DB Cargo and the DB Group have given basic approval for the “restructuring path.” The job reductions are intended to be carried out “in a socially responsible manner.”
DB Cargo has been recording losses for years. The situation became a problem for the railway group due to an EU competition procedure: the European Commission in Brussels ruled that the ongoing cross-subsidisation of the freight subsidiary by other parts of the group distorted competition. As a result, DB Cargo must return to profitability under its own power.
External experts have determined that DB Cargo can be “fundamentally renewed,” DB said. However, this would require “streamlining structures” and making the company “sustainably profitable.” The railway operator expressed confidence that the freight division can “meet the conditions of the EU competition procedure while also remaining a reliable logistics partner for the European economy and industry in the long term.”
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