The Strategist

Deutsche Bahn to lay off 8,400 employees to cut losses



07/14/2023 - 03:35



By the end of 2023, the company expects to incur losses totaling €225 million, according to the Handelsblatt newspaper.



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Deutsche Bahn (DB), a German railway company, may fire up to 8.4 thousand workers in order to reduce the costs of its losing division, reported Handelsblatt referring to claims made by corporate representatives.

Joerg Hensel, president of DB's European Works Council, "up to 8.4 thousand people out of 30 thousand employees [of the DB Cargo subsidiary] may lose their jobs" in the event that the company is completely or partially refused permission to lease specific freight train cars. 

The significant losses suffered by DB Cargo, which provides this form of transportation, are the cause of potential layoffs. They totaled €655 million last year. The corporation projects financial losses of €225 million by the end of 2023. The carrier wants to make up for the losses "through austerity measures, more efficient use of available capacity and assistance from the state budget," the newspaper claims. Hensel warned that if these measures are insufficient, layoffs will occur.

source: handelsblatt.com




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