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Deutsche Bahn Plans to Cut Nearly One in Three Management Positions

The German railway operator Deutsche Bahn aims to simplify its management structures. According to Supervisory Board Chairman Werner Gatzer, the company will eliminate an entire organizational level within its leadership hierarchy to achieve this.

As part of the corporate restructuring, Deutsche Bahn intends to cut at least 30 percent of its management roles. Gatzer shared this information with the portal Table.Briefings. According to company data, approximately 3,500 employees are currently employed in the group’s management sector.

“An entire level between the executive board and management will disappear,” Gatzer explained. The board, led by the new CEO Evelyn Palla, concluded that streamlined structures will facilitate faster decision-making. “We on the supervisory board support this one hundred percent,” he added.

Return to Profitability Amid Infrastructure Challenges

According to Gatzer, the railway expects to report a positive operating result for the past year for the first time in nearly a decade. While a break-even balance is anticipated, the final annual report has not yet been finalized. The operating result is calculated before taxes and interest, reflecting the profitability of the core business.

Like Palla, Gatzer noted that punctuality figures are unlikely to improve this year. The primary objective is to stabilize the current situation. He noted that the infrastructure has suffered from underfunding for decades: “We feel this every day.” The chairman emphasized that it will take time to reach a level that “meets what people have a right to expect.”

Evelyn Palla has promised: “Everything will change at Deutsche Bahn.” Further details on the new CEO’s strategic plans are available in our extended report.


Source: AFP

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Daniel Tat

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