German Train Drivers’ Union claims the company is “driven unchecked into the wall”.
DB Cargo must cut 2,300 jobs and operate without state support from 2026. GDL, the German Train Drivers’ Union is reporting the consequences of restructuring may be even tougher – and that the management is heading rather towards liquidation than restructuring.
DB Cargo’s restructuring plan involves a significant organizational overhaul starting in 2025. The company will be divided into five smaller units intended to operate independently, resembling mid-sized businesses. Alongside this structural shift, the scope of planned job cuts has expanded, GDL claims. Initial plans projected 2,300 layoffs, but current estimates suggest around 5,000 employees will lose their positions. Additional measures include asset sales, such as locomotives, with plans to lease them back when required, fuelling speculation about a potential partial breakup or liquidation.
Criticism over management decisions
Concerns about management practices have intensified, with critics alleging a lack of coherent strategy to address DB Cargo’s financial struggles. The decision to release locomotive drivers from employment, despite staff shortages in other areas of the rail network, has drawn scrutiny. Critics argue that the measures taken appear more aligned with a gradual divestment than a robust restructuring effort.
GDL advices train drivers to find jobs elsewhere
The situation has prompted the GDL to advise DB Cargo workers to consider alternative employment opportunities within the rail industry. GDL highlights better working conditions at other railway companies and urges affected employees to seek positions elsewhere. The union has expressed dissatisfaction with the corporate policies that it claims have placed employees in precarious positions while management benefits from bonuses.
As DB Cargo progresses with its restructuring efforts, the coming years will determine whether the company can achieve the economic viability required by the EU Commission or if deeper consequences for the freight division—and its employees—await.