The Deutsche Bahn AG subsidiary is planning a workforce reduction of 893 positions and other operational downsizing due to what it called “unprecedented challenges” in the rail transportation market caused by declining commodities volumes.
DB Cargo UK plans to slash 893 positions from its workforce due to what it calls “unprecedented challenges” in the rail transportation market, according to a statement from the company.
In addition to the workforce reduction, the Deutsche Bahn AG subsidiary is considering downsizing its locomotive and wagon fleet, as well as a restructuring its operational sites.
Although the final decision has yet to be made, the firm primarily attributed the move to “rapid and unprecedented changes in the markets it serves,” specifically citing the dramatic decline of core commodity markets such as coal.
“Responsible and successful businesses must evolve and reshape as their markets change and sometimes this means making tough decisions,” DB Cargo UK CEO Hans-Georg Werner said in a statement. “Whilst this is a difficult time for all of us at DB Cargo UK, reshaping the company will enable us to build a business for the future and protect the majority of jobs. We are fully committed to supporting colleagues who may be at risk of redundancy.
“We firmly believe in the future of rail freight in the UK,” he added. “Our motorways and roads are becoming more congested and rail offers fast and clean supply chain solutions. Our new business strategy will ensure we are a perfect logistics partner of choice for customers across all sectors, including construction, automotive and intermodal, long into the future.”
DB Cargo UK to cut nearly 900 jobs
