German rail operator Deutsche Bahn announced plans to cut around 9% of its staff, totaling 30,000 jobs over the next five years. This decision comes after the company reported a significant increase in year-on-year net losses, soaring 16-fold in the first half of 2024. The losses were attributed to factors such as extreme weather, strikes, and investments to repair an aging rail network.
Deutsche Bahn reported a net loss of €1.2 billion in the first half of the year, compared to a loss of €71 million during the same period the previous year. Operating losses from its core business also increased to €1.2 billion, compared to €339 million in the first half of 2023. The company is now aiming for a yearly operating profit of around €1 billion.
Despite the challenging financial situation, Deutsche Bahn received some positive news as the German government plans to provide billions in repayments as part of a new program to support rail renovation. The company invested €4 billion in rail networks and services in the first half of the year, a 35% increase compared to the previous year. CEO Richard Lutz highlighted the need for investment in the aging rail network, which has been prone to malfunctions due to decades of under-investment.
The government is expected to spend €30 billion on renovations by 2037, a downgrade from the previous target of €45 billion, due to concerns about Germany’s debt burden. Deutsche Bahn remains committed to improving its services and financial performance despite the challenges it faces.
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