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Cuts and Changes at DB Cargo: 2,300 Jobs to Go, Company to Reorganize

Cuts and Changes at DB Cargo: 2,300 Jobs to Go, Company to Reorganize
photo: Dalibor Palko / DB Cargo/DB Cargo
11 / 10 / 2024

DB Cargo is gearing up for a major restructuring! CEO Sigrid Evelyn Nikutta has announced the elimination of 2,300 jobs and the launch of a voluntary resignation program. The company will adopt a new structure focusing on steel, automotive, and other industries.

RAILTARGET reports on the restructuring plans at DB Cargo. 2,300 jobs will be cut, and a voluntary severance program is being introduced. Nikutta, the chairwoman of Europe's largest rail freight company, DB Cargo, shared on LinkedIn that after difficult negotiations between the board and the workers' general council, DB Cargo has developed a reorganization plan for the German rail freight company.

According to Nikutta, future profitability is tied to reducing costs. The workforce cuts will affect 2,300 positions, with DB Cargo offering early retirement options and creating a voluntary exit program with enhanced severance packages.

Starting on January 1, 2025, DB Cargo will operate under a new organizational structure. The company will create sector-focused units better tailored to customer needs—steel, automotive, liquid and bulk goods (chemicals, raw materials), Full Load Solutions (such as for consumer goods), and a division for single wagonload transport. An organizational unit for maritime and continental combined transport will also remain in place.

Each organizational unit will function as a separate entity, fully responsible for transport quality and financial results. They will have their own employees and fleets of locomotives and freight cars.

DB Cargo will also begin offering transport services based on standardized timetables, introducing shuttle services wherever feasible. In terms of fleet modernization, DB Cargo plans to focus on replacing diesel locomotives with modern hybrid-powered locomotives.

Source: LinkedIn

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