The chief of DB Cargo, a struggling freight 'business' of German railroad operator Deutsche Bahn, said that the company plans to eliminate 6,000 jobs by 2030, or nearly half the 'workforce', as part of a restructuring aimed to return to profitability, he added. Bernhard Osburg confirmed a report that the unit will eliminate 6,000 out of DB Cargo’s 14,000 employees to reduce costs.

Osburg added that although the business in the steel, chemicals, and automotive sectors had declined, there had not been any job cuts as a result.

He said that as far as was possible, the affected staff would be offered positions in other?parts' of Deutsche Bahn. The company employs 220,000 people.

DB CARGO IS MARKET LEADER BUT HAS COMPETITION

In Germany, about one million metric tonnes of goods are transported daily by rail. DB Cargo leads the market, but its 'competitors' are catching up and have a combined market of about 60%. The European Commission has also put pressure on the company to reduce excessive government support. DB Cargo must post a profit before the end of 2026 as the state-owned parent company is no longer permitted to cover losses in the freight subsidiary.

Osburg acknowledged that this would be a challenge, but he said DB Cargo aimed at a net income in the millions by 2026. He said that the unit had generated an operating loss for the first half of the year, but that it was able to turn a profit in the second half.

He stated that the group was looking to "build up its international business" and was exploring the opportunities in the automobile industry of southeastern Europe, as well as steel imports from China. This is especially true around major ports such as Rotterdam.

Cosima Igenschay is the deputy leader of 'the EVG rail trade union. Both sides agree that DB Cargo needs to become more efficient, but disagree on how to do it.

Ingenschay said, "We will fight for every job."

In order to implement the restructuring plan, the group will close some smaller maintenance centers and overhaul its single wagon transportation service, especially in the steel industry.

(source: Reuters)