Deutsche Bahn Removes DB Cargo CEO Sigrid Nikutta: €3.1 Billion Losses End Her Restructuring Era

Deutsche Bahn has dismissed Sigrid Nikutta, Chairwoman of the Management Board and CEO of DB Cargo, effectively ending her model of restructuring the freight operator and returning it to profitability.

Her dismissal must still be approved by the Supervisory Board, which is scheduled to hold an extraordinary meeting on 30 October. This marks one of the first major personnel decisions by Evelyn Palla, who recently took over as head of Deutsche Bahn AG.

Deutsche Bahn Güterverkehrschefin Sigrid Nikutta verliert ihren Posten und soll noch Ende des Monats abberufen werden. Sie war wegen ihren obskuren Sanierungsplänen von Wolfgang Wendland @WoelfiWendland in die Kritik geraten. pic.twitter.com/ak4QHkKSP1

— ✪꧁🇳🇴 Viking Heritage 🇳🇴꧂ ✪ (@KaiHermy) October 22, 2025

DB Cargo’s Long-Running Crisis

DB Cargo has been in crisis for years, recording persistent and high losses. Until recently, the negative results were offset by profits from other divisions within Deutsche Bahn, but this practice was prohibited by the European Commission following complaints from private freight operators, which argued that such transfers constituted unlawful state aid.

Although Deutsche Bahn, with the support of the German federal government, secured a special subsidy programme for single wagonload traffic—DB Cargo’s most loss-making segment—it was insufficient to cover systemic losses. When approving this aid, the European Commission imposed a condition that DB Cargo must achieve profitability by 2026.

Nikutta’s restructuring plan focused on staff reductions and vehicle sales. The number of DB Cargo employees was expected to decrease to 10,000 over the next few years, down from 17,000 at the end of 2024. The plan also included closure of workshop facilities and a large-scale rolling stock sale-and-leaseback programme. Despite these measures, DB Cargo’s market share in German freight transport continued to fall. According to the Federal Network Agency, it dropped to 44% in 2023 and is still declining.

Government Subsidies and Market Impact

Although the federal subsidy approved by the European Commission for the single wagonload segment was not intended exclusively for DB Cargo, in practice, the national rail freight operator remains the only company capable of offering such services due to its extensive network. In the overall freight market, however, the situation is more diverse: while DB Cargo remains the largest standalone enterprise in the sector, its market share has significantly eroded in recent years.

Nikutta’s Career and Internal Tensions

Sigrid Nikutta joined Deutsche Bahn in 1996, starting in the corporate training centre before holding various management roles in marketing and human resources. In 2009, she joined the management of DB Cargo Poland. From May 2010 to 2020, she served as CEO of Berlin’s public transport company BVG, before returning to Deutsche Bahn in 2020 as CEO of DB Cargo.

Her nearly six-year tenure at DB Cargo was marked by continuous losses, which created growing tension within the company’s leadership. The railway and transport workers’ union EVG harshly criticised her performance in an open letter to the new Deutsche Bahn CEO Evelyn Palla in mid-October:

"Nikutta’s record is catastrophic – since she took office, DB Cargo has accumulated €3.1 billion in losses, which speaks for itself," wrote the EVG.

"What she calls transformation at DB Cargo is, in reality, a headless liquidation," added EVG Vice Chair Cosima Ingenschay.

Internal Report Questions Restructuring Plan

An internal analytical report commissioned by Deutsche Bahn has also surfaced, casting further doubt on Nikutta’s leadership:

"It is highly probable that DB Cargo’s restructuring plan is not objectively suitable for ensuring sustainable profitability and competitiveness. Some of the assumptions in the plan are overly optimistic and, under current market and competitive conditions, likely unattainable."

Leadership Reshuffle at Deutsche Bahn

In line with the coalition agreement of the German government, Deutsche Bahn has begun a management reorganisation. Richard Lutz resigned as CEO in September, and was replaced by Evelyn Palla, previously board member for regional transport. The number of board members has been reduced by two.

Further personnel changes are expected: the vacant leadership position at DB Regio, previously managed by Palla, is likely to be filled by Harmen van Zijderveld, a current board member of DB Regio. Karin Dohm, former executive at Hornbach, is set to become the new Chief Financial Officer, replacing Levin Holle, who left Deutsche Bahn earlier this year to join the Federal Chancellery.

Source: n-tv