German railway company Deutsche Bahn to cut 30,000 jobs

(Patria) - German railway company Deutsche Bahn reported a significantly higher loss in the first half of the year and announced that it will cut around 30,000 jobs in the next five years.

From January to June, Deutsche Bahn operated with a net loss of 1.2 billion euros, more than triple compared to the same period last year.

Its revenue decreased by three percent, to 22.3 billion euros.

The company also closed last year with a deficit of 2.4 billion euros, approximately ten times higher than in 2022, citing investments in track modernization, high energy costs, debt, and strikes.

Investments in the first six months reached 7.3 billion euros and were 18 percent higher than last year.

The German logistics giant is investing in infrastructure with government support, and among the burdens on its operations, management highlights strikes and maintenance problems.

The government has already paid the group three billion euros, so the net financial debt at the end of June was one billion euros lower than last year, they note.

All parts of Deutsche Bahn's business must return to profitability, emphasized Chief Financial Officer Levin Holle.

- To achieve this, we must significantly improve cost efficiency - said Holle, adding that their goal is to reduce the number of permanent employees by about 30,000 in the next five years.

The planned number of layoffs roughly corresponds to the "natural fluctuation" of workers over a two-year period, stated Holle, adding that 1,500 administrative jobs will be cut this year alone.

- In the future, we must provide more rail services with fewer people - said the Chief Financial Officer of Deutsche Bahn, adding that digitalization and automation will help them in administrative "processes".