Deutsche Bahn Plans Spending and Hiring Freezes

Fri 5th Apr, 2024

Image by Jonas from PixabayFollowing recent strikes, wage escalations, and a mounting debt burden, Deutsche Bahn purportedly gears up for stringent austerity measures, according to sources within the company. A company representative disclosed to Reuters on Friday that preparations are underway for a hiring freeze and a near-total freeze on spending across the group.

While the primary impact is anticipated within the group's holding company, subsidiaries are also expected to adhere to the measures. A targeted saving of 250 million euros in long-distance transport is envisioned to meet the objectives for 2024.

Insiders suggest that the board might greenlight these austerity measures as early as Tuesday. When approached for comment, a railway spokeswoman declined to confirm or deny the reports.

The proposed qualified hiring freeze entails that new appointments and positions necessitate approval from the group management. While recruitment of train drivers will persist, administrative roles within the company are slated for streamlining.

Under the qualified spending freeze, all discretionary expenses across the group, including business trips, would require endorsement from the group management. "This serves as the emergency brake within the organization," remarked a company spokesperson.

These measures are poised to impact all segments of Deutsche Bahn's operations in Germany, excluding the international subsidiary Schenker, which is currently on the market for sale. According to insider sources, projects within the rail network and critical investment decisions for the year are anticipated to proceed as planned.

Image by Jonas from Pixabay


Write a comment ...
Post comment