German Rail to Cut 6,000 Jobs at Freight Subsidiary DB Cargo - Deutsche Bahn slashes 6,000 jobs to save struggling DB Cargo division
Deutsche Bahn (DB) is set to cut around 6,000 jobs at its struggling freight division, DB Cargo. The move comes as part of a wider restructuring plan aimed at restoring profitability and complying with EU competition rules. The European Commission has already ruled that financial support from other DB Group divisions gives DB Cargo an unfair advantage.
DB Cargo has faced years of losses, prompting an EU investigation into its financial practices. The European Commission found that cross-subsidies from other parts of Deutsche Bahn gave the freight arm an unfair edge over competitors. To resolve this, the company must now become self-sufficient and profitable.
The restructuring plan, approved by DB Cargo's supervisory board and the wider DB Group, includes significant job reductions. While the exact timeline for the 6,000 job cuts remains unclear, the plan extends to 2030. External auditors have confirmed that streamlined operations could make DB Cargo financially sustainable.
Deutsche Bahn remains optimistic about the future of its freight division. The company expects DB Cargo to meet EU requirements and continue as a reliable logistics partner. A full external assessment is due by the end of February 2026, with detailed implementation talks to follow.
The job cuts and restructuring aim to bring DB Cargo back to profitability without relying on internal subsidies. The EU's competition rules demand that the freight operator stand on its own financially. If successful, the changes will secure its position in the logistics market for years to come.
