Deutsche Bahn, Germany's state-owned national rail operator, said Thursday 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, and an official decision is due in October.
Cutting 6,000 jobs – about half the firm's workforce – 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."
