Spending freeze imposed
Railways are probably stopping hiring – with the exception of train drivers
April 5, 2024, 3:55 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
The railway went deep into the red last year. And apparently the goals for this year are also in danger. That’s why the company is pulling the ripcord. Almost all job appointments must be approved by top management – as do business trips.
After strikes, wage increases and a rapidly increasing mountain of debt, Deutsche Bahn is apparently pulling the emergency brake: the company now wants to embark on a severe austerity course. 250 million euros are to be saved on long-distance transport in order to achieve the targets for 2024. “A hiring freeze and an almost group-wide spending freeze are being prepared,” said a company representative. Elsewhere in the company it was said that the group holding company was primarily affected, but the subsidiaries were also included. In corporate circles it was said that the board might decide on the cuts as early as Tuesday. A railway spokeswoman declined to comment.
The so-called qualified hiring freeze means that new appointments and, above all, new positions must be approved by the group management, it was said. While train drivers will continue to be hired, the administration should be streamlined. All extra expenses, including business trips, should also have to be approved by the group management. “This is the emergency brake in the group,” said a company representative.
This would ultimately affect all of the railway’s business areas in Germany, but not the international subsidiary Schenker, which is up for sale. According to company circles, the projects in the rail network and the key investment decisions this year should be implemented as planned.
The group recently reported a loss of 2.4 billion euros for last year. Revenue fell by 13 percent to around 45.2 billion euros. According to the information, the reason for this was that the railway made advance payments for the high investments in the infrastructure.