Germany's DB Cargo plans 6,000 job cuts in bid to return to profit

By Christian Kraemer

BERLIN, Feb 19 (Reuters) - German railway operator Deutsche Bahn's struggling freight business DB Cargo plans to cut 6,000 jobs, nearly half workforce, by 2030 as part of a sweeping restructuring aimed at returning to profit, the unit's chief said on Thursday.

Confirming a Reuters report, Bernhard Osburg said the unit would eliminate about 6,000 of DB Cargo's 14,000 workforce in a bid to cut costs, which he said were too high.

"That's the gap between us and the competition," Osburg said, adding that business from the automotive, steel and chemicals sectors had fallen sharply without staffing adjustments.

About one million tonnes of goods are transported by rail every day in Germany. DB Cargo is the market leader, but its competitors together already have a market share of around 60%.

Additional pressure has come from the European Commission to curb excessive state support. DB Cargo is required to post a profit by the end of 2026, as its state-owned parent is no longer allowed to cover losses at the freight subsidiary.

Describing that goal as a major undertaking, Osburg said DB Cargo aimed to post a net profit in the double-digit millions for 2026. Osburg said the unit generated an operating profit for the second half, after a 96-million-euro operating loss (EBIT) in the first six months.

Cosima Ingenschay, deputy leader of the EVG rail union, said both sides agreed that DB Cargo must become more efficient but were at odds on how to achieve that, adding tough talks loomed.

“We will fight for every job,” said Ingenschay.