DB Cargo to cut 6,200 jobs in Germany as EU deadline looms
DB Cargo is preparing to cut around 6,200 jobs in Germany by 2030, a move that could eliminate nearly half of its domestic workforce.
The layoffs are part of a major restructuring plan aimed at reviving the struggling rail freight operator, which has suffered years of financial losses. The job cuts will affect almost every department, including operations, dispatching, planning, administration, sales, and IT. Currently, DB Cargo employs around 14,000 full-time workers in Germany.
The restructuring comes after the European Commission approved €1.9 billion in state aid for DB Cargo in November 2024. However, Brussels attached strict conditions to the support, requiring the company to implement major reforms and prove long-term financial viability by the end of 2026.
Under EU state-aid rules, Deutsche Bahn can no longer continue covering DB Cargo’s losses without an approved recovery plan, as doing so could distort competition in Europe’s rail freight market. This has increased pressure on the company to cut costs and improve efficiency as quickly as possible.
DB Cargo CEO Bernhard Osburg previously stated that the company expected to reach an agreement with employee representatives regarding the restructuring. He said the transformation program is expected to generate around €1 billion in savings and operational improvements by the end of the decade.
A major focus of the restructuring is DB Cargo’s single-wagonload business, one of the most labor-intensive freight systems. Although this segment remains crucial for industries such as steel, chemicals, automotive, and construction, it has long struggled with high operating costs and inconsistent capacity usage. To improve profitability, DB Cargo plans to introduce more standardized shuttle services, better route optimization, increased freight bundling, and fewer sorting sidings.