Feb 19 • 13:05 UTC 🇩🇪 Germany SZ

Deutsche Bahn: DB Cargo cuts nearly every second job

The new head of the troubled rail freight division DB Cargo believes that significant job cuts are necessary for the company's survival and profitability.

Bernhard Osburg, the new CEO of DB Cargo, has stated that restructuring the struggling rail freight division without massive job cuts is not feasible. He highlighted the need for DB Cargo to attain industry-standard profitability, which it is currently far from. According to Osburg, by the end of the decade, the company is expected to reduce its workforce from 14,000 jobs to about 8,000, representing a reduction of around 6,000 positions, or more than 40% of the current workforce.

Osburg also indicated that despite the job reductions, DB Cargo aims to grow, particularly looking for opportunities in overseas markets. He pointed out that in Germany, approximately one million tons of goods are transported by rail daily, where DB Cargo currently holds a leading market position. However, the company faces competition, as rivals have collectively captured a 60% market share, while DB Cargo has been operating at a loss for years, contrasting with private competitors who often achieve returns of 2-3%, even under challenging conditions.

The railway union EVG has voiced its opposition to the proposed job cuts, suggesting a potential escalation of labor disputes. There is a strong sentiment that while cost-cutting measures might be necessary for DB Cargo's survival, the impact on employees and the broader implications for the freight transportation industry need to be carefully considered as the toll of job losses could undermine morale and operational effectiveness.

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