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DB Cargo Weighs Up to 80% Downsizing Without New State Funds

Labor leaders are urging nonprofit status for the loss-making wagonload segment ahead of a decision due at the end of July

Overview

  • DB Cargo is evaluating a 60 to 80 percent reduction in its operations, which would eliminate at least 4,000 jobs and potentially up to 8,000 positions.
  • CEO Sigrid Nikutta has stated that the freight arm cannot continue without additional state subsidies after posting a €357 million loss in 2024 and anticipating further shortfalls this year.
  • The struggling single wagonload segment represents about 40 percent of DB Cargo’s traffic and has operated at a deficit despite existing government support.
  • The EVG union proposes moving the deficit-ridden wagonload service into nonprofit status under DB InfraGO to maintain operations without commercial profitability targets.
  • EU mandates require DB Cargo to break even by 2026, and Deutsche Bahn’s board aims to reach a final restructuring decision by the end of July.