DB Cargo Seals Deal on 6,200 Job Cuts as EU Profit Deadline Looms

DB Cargo has reached a formal agreement with worker representatives to eliminate 6,200 of 14,000 jobs in Germany by 2030, locking in a restructuring programme that Europe's largest rail freight operator hopes will satisfy Brussels and avert a forced break-up.

The agreement, confirmed by chief executive Bernhard Osburg in an interview with Reuters, formalises a cost-reduction programme worth around one billion euros. DB Cargo aims to implement most of the reductions without compulsory redundancies, with employees expected to be offered other positions within the wider Deutsche Bahn group and many of those affected approaching retirement age.

The cuts carry a regulatory edge. The restructuring follows European Commission approval granted in November 2024 for 1.9 billion euros in state aid, with the Commission requiring DB Cargo to demonstrate long-term profitability by the end of 2026 or face potential break-up proceedings. The state aid arrived with a structural cost attached. The profit-transfer agreement under which DB AG had absorbed DB Cargo's losses since 2012 was terminated with effect from 1 January 2025, leaving the freight unit to stand alone.

Almost half of the affected positions are linked to single-wagonload transport, the labour-intensive segment relied upon by Germany's steel and chemicals industries. Single-wagon services receive 300 million euros in state support in 2026, tapering toward roughly 240 million euros, and Osburg has called for the subsidy to be extended beyond 2030, though no political decision has been taken.

Osburg struck a cautiously optimistic note on returns. Affected employees would receive support and new perspectives within the DB labour market, the company said. Despite higher energy prices and weaker economic forecasts, the operator still expects a positive net result for 2026, having reported an operating loss of seven million euros in 2025. The rail union EVG has pressed Berlin for further support for the workforce.