The newly appointed CEO of Deutsche Bahn (DB), Evelyn Palla, is planning a radical restructuring of the company’s central headquarters, signaling a dramatic shift in strategy just three months into her tenure. Internal documents, obtained by “Handelsblatt”, reveal a significant downsizing of the management hierarchy, raising questions about the speed and scope of the changes and the potential impact on the struggling national rail operator.
The proposals outline a reduction of the first leadership tier beneath the executive board from 43 positions to just 22. A complete elimination of the five roles currently held by corporate representatives is also planned, suggesting a move away from centralized control and a push for greater autonomy within DB’s various divisions. Furthermore, the moves are intended to streamline decision-making, shifting power back to the Chief Executive Officers of the subsidiaries and emphasizing decentralized responsibility.
This sweeping reorganization follows a previous reduction of the executive board from eight to six members, coupled with the planned dissolution of the Infrastructure and Technology departments by year-end. The ambition is to improve economic viability across all subsidiaries and curtail centrally managed programs, a tacit acknowledgement of perceived inefficiencies within the current structure.
While proponents frame this as a necessary modernization, critics within the company and amongst political observers are questioning the rationale and execution of such a rapid dismantling of current management structures. The potential for disruption and the impact on employee morale, particularly given pre-existing concerns about DB’s stability, remain significant risks. Concerns have been raised about whether the current management possesses sufficient experience to implement such sweeping changes effectively and whether the focus on pure economic viability will compromise the vital public service role of Deutsche Bahn.
The initial phases of the new management concept are slated to be operational by January 1, 2026, with some positions being eliminated as early as this year. This accelerated timeline adds to the anxieties surrounding the reshuffle, amplifying scrutiny of Palla’s leadership and the long-term consequences for Germany’s crucial transportation infrastructure.
