Deutsche Bahn, the German rail operator, is set to cut around 9% of its staff following significant financial losses in the first half of 2024. Over the next five years, the company will eliminate 30,000 jobs, with 1,500 of those cuts happening this year, according to an announcement made on Thursday.

Extreme weather, strikes, and investments aimed at repairing an aging rail network have severely impacted Deutsche Bahn's profitability. The company reported a net loss of €1.2 billion for the first half of the year, a stark increase from the €71 million loss during the same period last year.

Operating losses from its core business also escalated to €1.2 billion, up from €339 million in the first half of 2023. Deutsche Bahn now aims for an annual operating profit, with adjusted earnings before interest and taxes projected to be around €1 billion, slightly less than the previously predicted amount.

Revenue forecasts have been slightly lowered to match last year's figure of €45 billion.

On a more positive note, Deutsche Bahn anticipates receiving billions in repayments from the German government as part of a new program to support rail renovations.

"DB Group once again increased its capital expenditures in the rail network and in better rail services in the first half of 2024 thanks to a major increase in Government funding," the operator said in a statement.

The company invested €4 billion in its rail networks and services in the first half of the year, a 35% increase compared to last year. CEO Richard Lutz acknowledged the network's current state, describing it as "aging" and "prone to malfunctions."

The German government plans to spend €30 billion on renovations by 2037, a reduction from the previous target of €45 billion due to concerns about the country's debt burden.
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