Kathmandu. Germany’s state-owned rail service, ‘Deutsche Bahn’ (DB), announced on Thursday that it plans to cut nearly six thousand jobs at its cargo subsidiary to increase profits and reduce reliance on state funds.
“The current restructuring plan envisages the reduction of approximately six thousand jobs at DB Cargo,” Deutsche Bahn informed in a blog post. It stated that this will be implemented in a socially responsible manner.
The loss-making DB Cargo is facing an EU investigation under state aid rules, with a final decision expected in October. “The reduction of six thousand jobs at the rail service firm will equate to a cut of almost half the workforce and will help Deutsche Bahn reduce its dependence,” said Koshima Insenze, Deputy Head of Deutsche Bahn.
He added, “The goal is to align DB Cargo with the European development market, streamline structures, and make it sustainably profitable, which will enable the company to comply with the conditions of the EU competition process.”
“We hope that every possible measure will be examined to increase efficiency before large-scale job cuts begin,” Insenze said. “I promise the employer that very tough negotiations are ahead. We will fight for every job,” he added.
