Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
DB Cargo, rail freight operator and subsidiary of Deutsche Bahn, announced plans to cut 2,100 jobs in Germany by the end of 2018. Moreover, 215 out of 1,500 loading stations will be ceased, mostly affected are freight rail stations in Eastern Germany. The corporate group has made losses since 2011. The market share decreased by 10% in 2015 due to deficient quality and excessively high costs. In December 2015, DB Cargo was planning to cut 2,600 jobs. The company wants to save costs and increase profits. According to the management, dismissals due to operational reasons are to be avoided.
DB Cargo currently employs 17,500 staff in Germany and 31,000 throughout Europe. For latest restructuring at Deutsche Bahn see January 2014.
Update
On 13 February 2017, after almost one year of negotiating, the management of DB Cargo and the works’ council came to an agreement regarding the above restructuring. The figure of job cuts decreased from initially 2,100 to about 2,000. The job cuts will be implemented by 2021 and not by 2018. Due to collective agreements, there will not be any compulsory redundancies. The staff members will be transferred to other positions within the group or will be offered cancellation agreements.
UPDATE 30 August 2017:
On 30 August 2017, DB Cargo announced to halt job reductions due to operational challenges. Instead, DB Cargo will create 700 new jobs to continue its good business development and start its growth campaign sooner than expected, including the acquisition of 60 railway engines and 4,000 new freight waggons.
Eurofound (2016), DB Cargo, Internal restructuring in Germany, factsheet number 87726, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/87726.
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