German railways to cut 6,000 jobs at cargo subsidiary

German railways to cut 6,000 jobs at cargo subsidiary

BERLIN
German railways to cut 6,000 jobs at cargo subsidiary

Engine drivers of German railway operator Deutsche Bahn (DB) sit in a locomotive of a goods train at the freight railway station in Hagen, western Germany.

Germany's state railway Deutsche Bahn said Thursday that it would cut about 6,000 jobs at its cargo subsidiary in a bid to boost profitability and reduce dependence on government funds.

"The current restructuring plan envisages a reduction of approximately 6,000 jobs at DB Cargo," Deutsche Bahn said in a blog post.

"The plan is to implement this in a socially responsible manner."

Loss-making DB Cargo is facing an EU investigation under state aid rules, with an official decision due in October.

Cutting 6,000 jobs -- equivalent to roughly half the firm's workforce in Germany -- would help the cargo division stand on its own two feet, Deutsche Bahn said.

"The goal is to align DB Cargo with European growth markets, streamline structures and thus make it sustainably profitable," it said.

"This will enable the company to comply with the conditions of an EU competition procedure."

Cosima Ingenschay, deputy head of the EVG transport union, said DB Cargo should not be made more efficient on the backs of workers.

"We expect every stone to be unturned and every possible measure to boost efficiency to be checked before large-scale job cuts start," she said.

"I promise the employer that very tough negotiations lie ahead. We will fight for every job," she said.

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