German state-owned DB Cargo is currently undergoing a massive restructuring to avoid punishment from European institutions. Unfortunately, it now seems that the company will have to lay off a much higher number of workers than it previously thought. In total, about 5,000 people will be out of work by 2029, while previous expectations were at 2,300, as the company’s CEO Sigrid Nikutta explained.
By the end of this year, the first 1,000 workers will have left the company, Nikutta said in an interview with the German Press Agency. According to her, these people will mostly be baby boomers retiring. An additional 650 will be transferred internally within the Deutsche Bahn group. Moreover, roughly 700 employees applied to the voluntary exit programme, introduced by DB Cargo in October.
Other than these more-than-2,300 people, it now seems that 2,650 more will follow suit. Most of the positions will reportedly be cut from administration, but workers in operations are likely to be affected as well. The news was not warmly welcomed by sector trade union EVG, who accused DB Cargo of not being reliable in such a delicate situation. “The situation is undoubtedly dramatic”, the union said in a press release.