The German rail giant Deutsche Bahn (DB) faces renewed pressure to streamline operations and cut costs, but labor unions are sharply criticizing the direction of those efforts, arguing that the burden should fall squarely on management layers rather than employees. While acknowledging the necessity of reducing expenditures following a substantial €760 million loss in the first half of 2025, both the Eisenbahn- und Verkehrsgewerkschaft (EVG) and the Gewerkschaft Deutscher Lokomotivführer (GDL) are questioning the current strategy unveiled by newly appointed CEO Evelyn Palla.
Palla’s plan for a comprehensive overhaul, including staff reductions and a dismantling of existing corporate structures, has been met with a public ultimatum from the unions. EVG chairman Martin Burkert highlighted the unsustainable proliferation of management tiers within DB, stating that “a tenfold increase in leadership levels, as observed in recent years, is a cost no company can afford”. This critique suggests a deeply ingrained problem of bureaucratic bloat hindering DB’s operational efficiency.
GDL chairman Mario Reiß echoed these concerns, pointing to a network of internal service companies contributing to a culture of internal financial redirection. He cited instances of exorbitant IT spending – specifically, examples of €5,000 per employee annually for basic laptop expenses – indicating systemic inefficiencies, not necessarily driven by investment but potentially by questionable accounting practices. “This internal siphoning of funds ensures that the lights remain on in the Berlin rail headquarters” Reiß remarked, implicitly accusing DB of prioritizing appearances over substantive improvements.
The unions’ position intensifies the scrutiny on Palla’s leadership. While she aims to fundamentally restructure DB, these criticisms raise concerns not only about the fairness of proposed staff reductions but also about the underlying causes of the company’s financial woes. The core issue, according to the EVG and GDL, is not simply a need to reduce personnel, but a fundamental reassessment of the management structure’s viability and accountability, demanding a dismantling of what they view as a deeply inefficient and potentially exploitative internal system. The coming months will be crucial in determining whether Palla’s reform agenda addresses these systemic issues or merely implements superficial cuts while neglecting the root causes of DB’s persistent financial challenges.
