Germany’s Deutsche Bahn is reportedly devising a set of stringent measures to curb significant financial losses and mounting debt, according to sources familiar with the matter. Described by one source as an “emergency brake,” the state-owned railway company seeks to navigate through a challenging landscape marked by strikes, rising wages, and the urgent need for infrastructure upgrades.
The proposed measures entail strict control over all new hires and expenditures, requiring approval from management henceforth. “A hiring freeze and an almost group-wide spending freeze are being prepared,” revealed a company insider to Reuters. These measures are expected to impact all sectors of Deutsche Bahn’s operations, excluding its logistics arm, Schenker, which is currently on the market for sale.
Official comments from Deutsche Bahn regarding these developments are yet to be disclosed. However, sources suggest that a decision regarding the proposed changes could materialize as soon as Tuesday. The financial report for 2023 revealed a widening net loss of approximately 2.4 billion euros ($2.60 billion) and a staggering net financial debt of 34 billion euros for Deutsche Bahn, underscoring the urgency of the situation.
