Major corporate restructuring
Bahn is apparently facing a three-year radical treatment
This audio version was artificially generated. More info | Send feedback
Deutsche Bahn is to be fundamentally renovated. In addition to upgrading the network, group structures are also being fundamentally reviewed. According to those involved, the job cuts could be greater than previously planned. In addition, not all connections are retained.
Deutsche Bahn is apparently facing a massive corporate restructuring with significantly tougher cuts than previously planned. “A three-year restructuring course is planned across the entire group,” said a government representative. In rail circles it was said that this would be a Ross cure, which would be called “S3” internally. The reduction of around 30,000 administrative jobs announced by the group over five years will probably not be sufficient for the restructuring. Long-distance train connections could also be thinned out, something the railways recently denied. After around three years, the railways in Germany should be back in the black.
The background is that local and long-distance transport as well as the network have recently suffered high losses. The freight subsidiary DB Cargo has been in a long-term crisis and is no longer allowed to be supported by the group following EU pressure.
Federal Transport Minister Volker Wissing has invited people to a press conference tomorrow, Tuesday, shortly after the state elections in Thuringia and Saxony. Wissing has already indicated that they can no longer just renovate the network, according to the invitation. You also have to make adjustments in the economic and organizational areas. A spokesman for Wissing did not want to comment on details. The railway did not comment, but had recently stated several times that the company had to become economically viable.
Deutsche Bahn is currently pushing ahead with the sale of its international logistics subsidiary Schenker. That could bring her around 14 billion euros. However, Schenker is the only significant source of profit for the state-owned company. With the sale, however, she could gain time for renovation.
