Germany's Deutsche Bahn targets €500 million in management cuts

The head of Deutsche Bahn is aiming to cut €500 million ($595 million) per year in management costs, as Germany's railway operator seeks to find a way to profitability.

Boss Evelyn Palla said at a meeting in Berlin that the company plans to focus on improving services across the board.

"And we will say goodbye to the rest, to everything else, because we simply can't afford it anymore," she added.

Just a few weeks after taking office last October, Palla announced a comprehensive restructuring of the entire group with tough cost-cutting measures.

Around 30% of the approximately 3,500 management positions are to be cut, with half of top leadership positions on the company's executive board also shelved.

The chief executive also intends to shift more responsibility to regional managers who are "close to the customer."

Progress is to be measured using the key figures of punctuality and operating profit, Palla said.

But punctuality has not improved in her first months in the office, with Palla blaming a record number of construction sites for delays as Deutsche Bahn embarks on a massive programme of rebuilding key infrastructure, including on some of the country's main train lines.

Last year, punctuality on long-distance services was only around 60%, the minimum target that Palla has set out for 2026.