The German rail operator will axe around 9% of its staff after year-on-year net losses soared around 16-fold in the first half of 2024.
ADVERTISEMENTDeutsche Bahn is preparing to cut 30,000 jobs over the next five years, with 1,500 posts set to disappear this year, the firm said on Thursday.
The losses amount to 9% of Deutsche Bahn's total staff base, although it is primarily administrative roles that will be affected.
Extreme weather, strikes, and investments to repair an ageing rail network hit the rail operator's profitability this year.
Just before announcing job cuts, Deutsche Bahn shared that its net loss for the first half of the year had reached €1.2bn.
This is compared to a loss of €71m recorded during the same period a year earlier.
Operating losses from its core business also stood at €1.2bn, compared to €339m in the first half of 2023.
Deutsche Bahn is now aiming for a yearly operating profit, specifically adjusted earnings before interest and taxes, of around €1bn. In March, it predicted this total at more than €1bn.
The firm also lowered its forecast for revenues slightly, matching the previous year's €45bn.
On a more positive note for the company, debt-ridden Deutsche Bahn expects billions in repayments from the German government as part of a new programme to support rail renovation.
"DB Group once again increased its capital expenditures in the rail network and in better rail services in the first half of 2024 thanks to a major increase in Government funding," said the operator in a statement.
The firm said it invested €4bn in its rail networks and services in the first half of the year, a 35% increase compared to last year.
After decades of under-investment, CEO Richard Lutz has said that the network is currently "ageing" and "prone to malfunctions".
The government is currently hoping to spend €30bn on renovations by 2037.
This is a downgrade from the previous target of €45bn, which was scrapped over concerns about Germany's debt burden.
