A sweeping restructuring of Deutsche Bahn’s corporate headquarters is planned by CEO Evelyn Palla, just three months into her tenure, sparking concerns over potential disruption and a shift in power dynamics within the national rail operator. Internal documents, obtained by “Handelsblatt”, reveal a significant downsizing of management layers, potentially impacting hundreds of employees and signaling a dramatic departure from previous centralized strategies.
The most striking element of Palla’s plan is the proposed reduction of leadership positions below the executive board. The number of positions on the first management level is to plummet from 43 to just 22, a nearly 50% decrease. The elimination of five roles held by corporate representatives further emphasizes the intention to streamline operations and decentralize decision-making. Furthermore, a reduction of four executive board seats within DB’s subsidiary companies is also slated, alongside specific cuts in DB Regio (from six to five members), DB Fernverkehr (five to four) and DB InfraGo (six instead of eight).
This reorganization follows a previous reduction of the corporate executive board from eight to six members and the planned dissolution of the Infrastructure and Technology departments by year-end. The rationale, according to internal communications, is to empower CEOs within individual subsidiaries, enabling quicker and more accountable decision-making. Palla intends to prioritize economic efficiency across all subsidiaries and curtail centrally-managed programs, suggesting a move away from a top-down management style.
However, critics argue the rapid and substantial changes raise questions about the stability and effectiveness of the ongoing railway modernization efforts, particularly ahead of the ambitious goals set for infrastructure upgrades and increased ridership. The move also fuels speculation regarding potential friction between Palla and existing management structures, hinting at a deliberate power shift within the company. The timeline for implementation, with initial steps expected to be in place by January 1, 2026 and some positions eliminated this year, represents a potentially turbulent period for Deutsche Bahn’s workforce and its ongoing operational challenges.