Deutsche Bahn launches major restructuring under CEO Evelyn Palla

German rail operator Deutsche Bahn announced a comprehensive corporate overhaul led by CEO Evelyn Palla. She declared, “We are saying goodbye to unattainable promises,” and said the company will now concentrate on reliability, operational quality and financial viability.

The plan unfolds in three phases: a new organisational structure will be implemented this year; by 2030 all business units – infrastructure, long‑distance, regional and cargo – must be economically competitive; and by the mid‑2030s, in time for the railway’s 200‑year anniversary, the network should be fully modernised with punctual services. The overhaul includes splitting the divisions into independently accountable units and shedding redundant central staff, with more than 1,000 jobs expected to disappear. Cost‑saving targets are €500 million per year from 2028.

Funding remains a challenge: the government is projected to fall short by roughly €13 billion, prompting Palla to stress the need for “sufficient, reliable financing and appropriate framework conditions.” Michael Obrowski, former Volkswagen finance director, will become chief financial officer on 1 September to guide the financial restructuring.