DB Announces Major Office Space Reduction as Part of Efficiency Overhaul
Economy / Finance

DB Announces Major Office Space Reduction as Part of Efficiency Overhaul

Deutsche Bahn plans to reduce its nationwide office space by at least 20 percent. According to reports cited by the “Handelsblatt” from company circles, this measure is intended to save the corporation approximately 100 million euros over the next five years.

Evelyn Palla, the head of Deutsche Bahn, is continuing her restructuring efforts, which previously included downsizing the board and management levels. “We are making the DB group leaner, faster, and more efficient,” Palla told the “Handelsblatt”. Less administrative personnel will translate directly into smaller office space, helping to lower costs and focus resources more heavily on core operations.

The employees are expected to consolidate their work areas. Deutsche Bahn announced that the corporation has recently conducted a critical review of its real estate portfolio. This reduction in space is a key component of the “DB 2035” strategy, which aims to make the group progressively more reliable and capable.

Palla previously announced in December that the number of jobs in the corporate leadership would be reduced from around 3,500 to approximately 2,500-a reduction of roughly 1,000 positions. The overall structural overhaul is projected to save the entire corporation over 500 million euros annually in operating and personnel costs starting in 2028.