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Deutsche Bahn to cut 14,000 jobs

Published: 14 Dec 09 10:58 CET
Online: http://www.thelocal.de/money/20091214-23923.html

German national rail provider Deutsche Bahn plans to lay off some 14,000 employees in the next five years, daily Der Tagesspiegel reported on Monday.

As many as 4,000 jobs will be cut from the company by 2011 as part of a new savings programme dubbed “React,” according to the paper.

While a member of the supervisory board said the figure of 14,000 jobs was relatively in few in view of the company’s 237,000 employees worldwide, transport union Transnet sharply criticised the move, saying the company would be weakened and unable to keep up with increased business as the economy improves.

Transnet is particularly distressed by plans to cut rail freight service positions. Transnet vice president Wolfgang Zell said the layoffs were a “confession of failure for management,” adding that Deutsche Bahn was using the financial crisis as an excuse to “increase profits by trimming.”

But Deutsche Bahn’s Schenker Rail logistics group, which covers much of the company's cargo traffic, rejected Transnet’s criticism.

“A clear cutting across the board will not happen in the rail freight service sector,” Schenker official Alexander Hedderich said, but he added that the company would need to react to a reduction in transport volume.

Deutsche Bahn refused to speak with Der Tagesspiegel about the report.

The Local (news@thelocal.de)

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15:26 December 14, 2009 by airborne1092
It sounds like DB is trying to save money and finance their new rail station in Stuttgart....
16:45 December 14, 2009 by Henckel
It's sad what has become of Deutsche Bahn, a railway system that was once truly great. Now it seems to be going the way of some of the "fallen flag" railways in the United States...
17:07 December 14, 2009 by nashv
Just for the sake of comparison :

"Indian Railways has one of the largest and busiest rail networks in the world, transporting over 18 million passengers and more than 2 million tonnes of freight daily.[4][5] It is the world's largest commercial or utility employer, with more than 1.4 million employees.[4][6] The railways traverse the length and breadth of the country, covering 6,909 stations over a total route length of more than 63,327 kilometres (39,350 mi). As to rolling stock, IR owns over 200,000 (freight) wagons, 50,000 coaches and 8,000 locomotives.[4]"

"As of 2005[update], Germany had a railway network of 41,315 km. 19,857 km are electrified. The total track length was 76,473 km, with 7734 locomotives. In 2006, railways in Germany carried ca. 119,968,000 passengers in long-distance trains (at an average distance of 288 km), and 2,091,828,000 passengers in short-distance trains (21 km on average)."

Even proprotionately speaking, DB is severely understaffed.
20:27 December 14, 2009 by Henckel
That's the problem we've had here in the States for decades -- understaffed, poorly maintained equipment, poor service. And it didn't matter whether the railways were in the private sector (New York Central System, Pennsylvania Railroad, Penn Central System, Rock Island Line, Reading Railway, Lackawanna, etc.) or government owned (Amtrak, Conrail). It's only in recent years, with the formation of several large systems, that operations have been rationalized -- in the process marking the end of several proud and historic railway names.
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