The rail freight transport subsidiary DB Cargo has to cut significantly more jobs

by times news cr

freight transport subsidiary ⁤of Deutsche⁣ bahn

DB Cargo has to‌ cut substantially more jobs ⁤than previously known

Updated on December⁢ 8, 2024 – 6:00 p.mReading time: 2 min.

Freight trains: ⁤DB cargo has been in the deep red for years. (Source: bodo Marks/dpa/dpa-bilder)

The job cuts at Deutsche​ Bahn’s freight transport subsidiary are larger than previously known. A total of ⁣5,000 jobs will ‍be lost.

The⁢ ailing freight transport⁤ division of Deutsche Bahn will have to cut significantly more jobs than previously assumed. “the current‍ economic forecasts mean that ⁣we expect a loss of 5,000 jobs by 2029,” said DB cargo boss Sigrid Nikutta to the German Press Agency. This increases ‍the previously expected‌ job cuts as a result of the change of⁢ DB Cargo.

So ⁢far, only the reduction of 2,300 jobs has been agreed with the‌ works councils. A large part of the ⁤additional jobs will be eliminated in governance, but the operational area will⁢ also⁣ be affected.

Nikutta ⁤wants⁢ to achieve this primarily thru natural ⁢fluctuation. “Around​ 1,000⁣ employees will have left ​the company as early as 2024,‌ essentially as the baby boomer generation of employees ​is now retiring,” she said.

Around 650 colleagues have already received new⁣ job offers within the railway group. A‍ further 700 employees‌ would leave the company as part of a ⁣voluntary exit program. From a cargo viewpoint, this reduces the remaining need to cut jobs over the next five years to‌ around 2,650 jobs.

Sharp criticism ⁢comes from the Railway and Transport Union (EVG). “Sadly, ⁣it‌ is typical for DB Cargo that you cannot rely on management’s promises. The bad news always comes in bits and pieces,” said EVG board member Cosima‍ Ingenschay, ​who is⁢ also deputy chairwoman of DB Cargo’s supervisory ⁤board, ​to the Berlin⁢ “Tagesspiegel”.

“Sending​ away everyone who ​isn’t on the ⁢clock⁢ at three is not the right way,” said Ingenschay. You also lose⁤ a lot of employees who are urgently needed‍ in order to grow again at some point.There is a great risk that more and more transport will be shifted to‍ the road in the coming years. “This is ⁢a fatal signal for the transport transition.”

The company has been making heavy losses for years. according to a decision by the ⁣EU Commission, these ​will no longer be allowed to be offset by​ the parent company in the future. DB Cargo⁣ now has untill‌ 2026 to​ get out of the loss zone.

That’s why ‌the company, the EVG railway union ‌and the works councils have been fighting for a far-reaching savings program for months. In October, all sides agreed to cut an initial 2,300‍ jobs. However, Nikutta had always emphasized that other jobs coudl be affected. According to DB Cargo, it has around 31,000 employees.

What are ⁢the main challenges currently faced by DB Cargo in the‌ freight transport sector?

Interview between Time.news⁤ Editor and transport Expert

Editor: Good afternoon,and welcome to Time.news!‌ Today, we have ​a‍ very vital topic ‍to discuss—recent developments⁣ concerning DB Cargo, the freight⁣ transport subsidiary of Deutsche Bahn.⁢ Joining⁣ us⁤ is Dr. Elena⁤ Schneider, a renowned⁤ expert in transportation economics. Thank you for being here, Dr. Schneider.

Dr. Schneider: ⁢Thank you for having me! it’s a pleasure ‍to discuss such an critically important issue.

Editor: Ther have been reports that DB Cargo is facing the need to cut significantly more jobs than initially expected. ‌What can you⁢ tell us about the reasons behind​ this decision?

Dr. Schneider: Absolutely. The logistics‌ sector, particularly rail freight, has been under immense pressure due to‌ multiple factors, including a decline ⁣in⁢ demand, rising operational costs, and⁤ increased‌ competition from other ‍modes of transport like ‌road freight. These challenges have forced DB Cargo to reassess⁣ its workforce needs.

Editor: It sounds quiet challenging. What ⁣specific factors do you ⁤believe ⁣have⁤ contributed to this increase in job cuts?

Dr. Schneider: Several ⁤elements ⁤are at ⁣play here.⁤ The impact of the ​COVID-19 pandemic is still being felt, as ‍freight volumes ‍did not⁢ bounce ⁣back to pre-pandemic levels. Additionally, the​ current ⁣energy​ crisis and inflation are driving up costs⁣ for rail operators. This combination of economic‌ stress and decreased demand creates a⁢ tough habitat for companies like ‍DB Cargo.

Editor: These‍ job‌ cuts can have broad ‌implications. ​What could‍ be the ‍potential impacts on the ​labor market and the overall‌ freight transport industry?

Dr. Schneider: Job ‍cuts in such a important⁣ firm can lead to uncertainty in the labor market,‌ especially in regions heavily ⁣dependent on rail freight employment.⁣ Moreover, if ​major players⁢ like⁣ DB Cargo ‌cut back, it⁢ can⁤ potentially‍ lead to ⁣a ripple effect, causing smaller competitors​ to reconsider their staffing and operational strategies.This could, in​ turn, impact service levels and freight‌ rates across the entire industry.

Editor: Given ⁢these challenges, what strategies do you think DB Cargo might consider ⁢to stabilize its operations and workforce in the long⁤ run?

Dr. ​Schneider: ‍ One ⁤crucial strategy would be investing in technology and innovation‌ to improve ‍operational efficiency. Automation and data analytics can optimize routes and reduce costs.Additionally, exploring⁤ new markets and diversifying ⁢services could help mitigate‌ risks associated with reliance on conventional freight modes.

editor: That makes a lot of sense. What can other transport companies learn from ⁢DB Cargo’s current situation?

Dr.Schneider: Companies need to remain ⁤agile ⁢and proactive ​in monitoring market trends. diversification ⁢of services and a strong​ focus on sustainability could be ⁤key. the ⁣rail‌ industry is shifting towards greener​ solutions, ‌and aligning with this trend can not only attract business but also align with regulatory pressures for environmentally⁤ amiable practices.

Editor: Thank you, Dr. Schneider. This has⁣ been incredibly insightful. ⁤As⁢ DB⁣ Cargo navigates through ‍these tough times, it’s crucial to keep the conversation going about how the industry can ⁤evolve and adapt.

Dr.Schneider: Thank ​you, and I look forward to⁢ more discussions on this vital topic‌ in the future!

Editor: ⁤ Absolutely. Thank you for joining us, and to our viewers, stay tuned for further updates‌ on this evolving story.

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