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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

03 April 2025, Berlin: Sigrid Evelyn Nikutta, Member of the Board of Management for Freight Transport at Deutsche Bahn AG and Chairwoman of the Board of Management of DB Cargo AG, talks to journalists from Deutsche Presse-Agentur in an interview. Photo: Kay Nietfeld/dpa (Photo by Kay Nietfeld/picture alliance via Getty Images)
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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.