The restructuring of Deutsche Bahn is accelerating, with newly appointed CEO Evelyn Palla rapidly reshaping the company’s leadership team. Personnel decisions approved by the company’s personnel committee on Monday signal a significant shift in strategy and raise questions about the government’s oversight of the rail giant.
Karin Dohm, previously CFO of automotive supplier Conti (a position she held for just eight weeks), is poised to become Deutsche Bahn’s new Chief Financial Officer. The swiftness of her appointment, following a short tenure at Conti, has already drawn scrutiny, with some observers questioning the due diligence process and potential for missteps given her limited experience within the rail sector.
Adding to the leadership changes, Harmen van Zijderveld, currently responsible for the “rail” division within DB Regio, is set to become the new board member for DB Regio, effectively succeeding Palla in that role. This move, while seemingly a vertical promotion within the company, underscores Palla’s intent to appoint individuals aligned with her vision of fundamental change.
However, the most significant development centers around the impending departure of Sigrid Nikutta, head of DB Cargo. A brutally critical assessment from consultancy firm Oliver Wyman, reportedly deeming Nikutta’s restructuring plan “objectively unsuitable” for revitalizing the struggling freight division, has evidently sealed her fate. The report highlights the deep-seated challenges plaguing DB Cargo and raises concerns about the efficacy of previous leadership approaches.
The EVG, a powerful rail and transport union, publicly demanded Nikutta’s removal just last week, further diminishing her standing within the organization. While a new Cargo chief has not yet been officially appointed, speculation is circulating regarding the possibility of appointing an external “Chief Restructuring Officer” (CRO), a recommendation explicitly put forward by Oliver Wyman.
Palla’s commitment to “turning the company on its head” and initiating a “complete overhaul” as she recently stated, is now visibly taking shape. The aggressive reshaping of leadership, particularly in the critical Cargo division, suggests a recognition of systemic failures and a forceful attempt at remediation. However, the rapid pace of change combined with the appointments of individuals with questionable track records raises political questions about the government’s role in overseeing Deutsche Bahn and ensuring a sustainable and effective turnaround strategy. The upcoming supervisory board meeting on October 30th is expected to confirm these appointments and likely to be a focal point for debate regarding the future direction of the national rail operator.