The German rail giant Deutsche Bahn (DB) faces increasing pressure to implement significant cost-cutting measures, but labor unions are sharply criticizing the direction of those cuts, arguing they disproportionately target frontline staff while leaving management structures largely untouched. Both the Eisenbahn- und Verkehrsgewerkschaft (EVG) and the Gewerkschaft Deutscher Lokomotivführer (GDL) acknowledge the necessity of cost reduction given the company’s recent financial performance – a staggering €760 million loss recorded in the first half of 2025 – but vehemently oppose a strategy they view as misaligned.
EVG leader Martin Burkert has publicly condemned the proliferation of management tiers within DB, highlighting a “tenfold increase” in leadership levels in recent years as unsustainable. He argues that such bloated hierarchies represent a critical drain on resources better allocated elsewhere. GDL head Mario Reiß echoed this sentiment, pinpointing the numerous internal service companies operating within the DB conglomerate as a primary source of inefficiency. He cited examples of exorbitant IT spending per employee, referencing cases where the cost for a basic laptop reportedly reached €5,000 annually. Reiß labelled this internal channeling of funds as a deliberate effort to maintain a lavish lifestyle at the company’s Berlin headquarters, essentially diverting resources from crucial infrastructural investments.
The unions’ critique comes at a delicate moment, as newly appointed CEO Evelyn Palla has already announced plans for substantial personnel reductions and a comprehensive restructuring of the company. Palla has pledged to “turn the company on its head” promising to eliminate roles and shrink the corporate leadership structure. While the unions broadly support the need for change, they are demanding a more equitable approach that scrutinizes management expenses and internal operational inefficiencies rather than relying solely on staff reductions, a move they claim will ultimately damage the rail network’s long-term viability and public service. The coming months will be crucial to observe whether Palla’s reforms address the unions’ concerns and implement a genuinely sustainable solution to DB’s financial woes, or if they reignite the cycle of criticism and distrust plaguing the national rail operator.