Half a billion euros in savings: Rail CEO Palla wants to streamline board - Deutsche Bahn slashes jobs and costs amid persistent rail delays
Deutsche Bahn is cutting costs and restructuring its leadership amid ongoing struggles with infrastructure and delays. Chairwoman Evelyn Palla, who took over in October 2025, has announced plans to streamline the company's executive board. The move comes as the rail operator faces another difficult year for passengers.
Palla has revealed a major overhaul of Deutsche Bahn's management structure. Out of 43 positions below the executive board, 21 will be scrapped. The focus will shift to roles that directly improve rail services, while other functions face cuts.
The company aims to save €500 million annually through these changes. However, challenges remain. Palla warned that 2026 will be a 'super construction year,' with 28,000 work sites expected to disrupt services further. Recent winter weather has already caused delays, likely pushing January's punctuality figures even lower. Deutsche Bahn continues to battle long-standing issues, including crumbling infrastructure and poor on-time performance. Despite the restructuring, passengers have been told to expect another tough year for travel reliability.
The management shake-up is part of Deutsche Bahn's effort to cut costs and improve efficiency. With €500 million in annual savings targeted, the company is prioritising roles that enhance service quality. Yet, ongoing construction and weather-related delays mean passengers will face continued disruptions in 2026.
