DB Cargo, the railway subsidiary of Deutsche Bahn, is moving forward with the reduction of 6,200 out of a total of 14,000 jobs. According to corporate chief Bernhard Osburg, an agreement on the necessary changes is expected to be reached by mid-June, with the full job reduction planned to be implemented by 2030. Osburg confirmed that the company is engaged in constructive discussions with the works councils and the supervisory board. In total, DB Cargo intends to implement restructuring measures equivalent to one billion euros by 2030.
The freight railway announced the cuts in February, but Osburg now defends the necessity of the move. He stated that although the situation is “very bitter” it is regretfully essential. A restructuring assessment for its German parent company, DB Cargo, mandated the job reductions to help the company turn a profit and achieve a long-term profitability rate of three percent.
Osburg provided initial details regarding affected locations. The job cuts will unfortunately also impact North Rhine-Westphalia, where the company currently employs around 3,300 staff across a dozen locations. Furthermore, the maintenance functions in Oberhausen will be sold off to a different railway subsidiary, affecting a double-digit number of positions. Changes and adjustments will also be required in the large Control Tower in Duisburg, the location responsible for planning, dispatching, and sales.
The company aims to make the job reduction process as “socially acceptable” as possible. Several factors are aiding this effort, including demographic changes, as many employees are nearing retirement age. Additionally, the large internal corporate labor market of Deutsche Bahn-which employs around 220,000 people across Germany-provides a buffer where there is always internal movement.
