A sweeping restructuring plan unveiled by Deutsche Bahn CEO Evelyn Palla aims to drastically reduce the company’s top-level management, a move lauded by rail union GdL as a crucial step towards restoring operational efficiency. The proposed overhaul, to be decided by the supervisory board on Wednesday, seeks to eliminate a layer of bureaucracy deemed obstructive to effective decision-making.
The core of Palla’s plan involves the abolition of five “corporate representatives” positions acting as a buffer between the executive board and first-tier management and a significant reduction in the number of managers below the board level – from 43 to just 22. Furthermore, the CEO intends to implement austerity measures impacting management structures within Deutsche Bahn’s subsidiary companies.
GDL union leader Mario Reiß emphasized the necessity of this radical change, praising it as a “correct and overdue approach”. He stated that shorter decision-making pathways, an end to the “ping-pong” of responsibility and a cessation of internal power struggles surrounding positions are prerequisites for Deutsche Bahn’s ability to function effectively. Reiß also cautioned against the potential for the restructuring to be diluted or compromised during implementation.
Analysts suggest the move acknowledges growing pressure on Deutsche Bahn to improve its financial performance and operational reliability, which have been plagued by years of delays and inefficiencies. However, critics argue that focusing solely on cutting management positions risks overlooking deeper systemic issues, including outdated infrastructure, inadequate investment in training and a complex organizational structure that predates the current leadership.
The supervisory board’s decision on Wednesday will be a critical test of Palla’s authority and will determine whether her vision for a leaner and more agile Deutsche Bahn can be realized, or if the proposed reforms will be met with resistance and watered down. The success, or failure, of this restructuring will likely have a significant impact on the future of German rail transport and the confidence of stakeholders.