DB Cargo, Deutsche Bahn’s freight division, is facing significant pressure due to EU subsidies. According to information obtained by Handelsblatt from company sources, the enterprise must achieve a performance improvement of €320 million this year.
This requirement stems from an EU aid procedure permitted under strict conditions: DB Cargo must reach break-even status-referred to as achieving “Schwarze Null”-by the end of 2026. The approval of Deutsche Bahn’s multi-billion euro loss adjustments for its freight sector by the European Commission was contingent on meeting this specific deadline. If the plan fails, the company reportedly faces existential challenges, according to the newspaper.
To meet these targets, changes are being discussed, including workforce reductions, asset sales, centralization of operations, and increased utilization rates. Out of roughly 14,000 full-time positions in Germany, an estimated 6,200 could be eliminated overall. Furthermore, corporate circles suggest that at least 1,200 jobs might potentially disappear by 2026 alone.
The final scale of these reductions will depend on reaching a consensus agreement with the railway and transport union (EVG) by mid-June. The agenda for these negotiations includes location issues, job security guarantees, and new European driver models. DB Cargo declined to comment regarding the ongoing negotiations with interest representatives.
Several broader factors are hindering the path toward financial stability. Economic growth expectations are being dampened by the situation in Iran, while key industries such as automotive, steel, and chemicals are experiencing weakness. Additionally, a state subsidy structure lacking certainty makes it difficult for funds to reach the areas where services are actually provided. Industry insiders also noted that maintaining the nationwide rail network will be impossible without reliable, multi-year financial commitments from political authorities.
