Job cuts

Deutsche Bahn posts billions in losses

Deutsche Bahn closed the first half of the year with a large operating loss.(Bild: AP)

Following new losses in the billions, Deutsche Bahn is planning to cut jobs and expenditure in order to get out of the red. The rail network is to be renovated and both freight and passenger transport are to be made profitable again.

"We have to create more rail with fewer people," says CFO Levin Holle about the situation. Far-reaching job cuts are being pushed through, with 1500 jobs being cut in administration alone. Within five years, 30,000 jobs are to be cut.

Unpunctuality and many construction sites
According to Deutsche Bahn, the spending freeze since March has already saved several hundred million euros. Nevertheless, due to a lack of punctuality (e.g. due to union strikes and storms) and network renovations, the influx of long-distance passengers has slowed down. The rail freight company not only made more losses, but also transported less freight.

Overall, the railroad made a loss of 1.2 billion euros in the first half of the year, following a narrow loss of 70 million euros in the same period last year. The operating business alone recorded a loss of 680 million euros.

Adjusted turnover fell by three percent to 22.3 billion euros. The fact that Deutsche Bahn still aims to achieve a profit before taxes and interest payments of around one billion euros for the year as a whole is due to repayments from the federal government. Deutsche Bahn had made advance payments for the refurbishment of lines.