German carrier DB Cargo is cutting 6,200 out of a total of 14,000 jobs.

Layoffs are affecting absolutely all sectors of the company, which is urgently trying to avoid complete financial collapse. As reported by the portal index.hr, the management's new restructuring plan is the only way out of years of losses.

European ultimatum

The European Commission allowed the German government to financially rescue the company, but under the strict condition that it become fully sustainable by the end of 2026. Simply put, European rules strictly prohibit loss-making companies from being financed indefinitely with taxpayers' money. How serious the situation is is shown by the fact that the company lost 96 million euros in just half a year last year, which in layman's terms means that their regular operating costs significantly exceeded all revenue generated.

Consequences of the industrial crisis

It is a well-known fact that the entire German economy is slowing down dangerously. Traditional clients in the automotive and steel industries are in crisis and producing less, so DB Cargo simply does not have enough freight for daily transport. In order to survive on the market, they plan to save one billion euros and turn to new clients in other European countries.

The decision on mass layoffs is clear proof that there are no longer protected jobs even in large state systems. The Deutsche Bahn Group symbolized German reliability and economic stability for decades, but the new industrial reality now demands extremely painful cuts. Unfortunately, the burden of this delayed and ruthless market adjustment will ultimately be paid exclusively by the workers.