Expert report criticizes db cargo's restructuring plan

An expert report by consulting firm Oliver Wyman deems DB Cargo's restructuring plan insufficient. The efforts to make the Deutsche Bahn's freight division profitable are seen as overly optimistic and lacking concrete measures. The union is calling for the dismissal of Cargo CEO Sigrid Nikutta.

The restructuring plan for DB Cargo, the freight transport subsidiary of Deutsche Bahn, has drawn sharp criticism. According to a report by consulting firm Oliver Wyman, commissioned by the railway itself, the plan is 'objectively unsuitable to eliminate the crisis causes and establish competitiveness.' It does not ensure 'sustainable profitability' and lacks 'sufficiently concrete measures.'

DB Cargo must achieve black ink starting in 2026, as the European Commission has prohibited Deutsche Bahn from offsetting the subsidiary's losses in a state aid procedure. Cargo CEO Sigrid Nikutta has thus ordered strict austerity measures, including staff reductions and vehicle sales. According to reports in the Frankfurter Allgemeine Zeitung, the workforce is to shrink from 19,000 to 10,000 employees in the coming years, with numerous workshops closing.

The report describes some assumptions in the plans as 'very optimistic and probably not achievable in the current market and competitive environment,' but considers a successful restructuring fundamentally possible. Deutsche Bahn has not commented on the analysis so far.

The Railway and Transport Union (EVG) is demanding Nikutta's dismissal. Her record is 'devastating – over 3.1 billion euros in losses since she took office,' wrote EVG deputy chair Cosima Ingenschay in a letter to Bahn board chair Evelyn Palla and supervisory board chair Werner Gatzer. What Nikutta calls transformation is 'a headless winding down.'

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