Rail freight company DB Cargo UK has announced that it will be cutting 95 traincrew roles as it seeks to address rising costs and loss of business.
A letter from CEO Andrea Rossi informed staff that the company had entered into consultation with the ASLEF union over reductions due to a “surplus of driver resource” thanks to a 25% reduction in the number of trains being run by the company each week.
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Rossi said: “This is a challenging but necessary process to protect the business through the significant financial challenges it faces today but I would like to reassure colleagues that the company’s commitment to its long-term vision to be the first choice for rail logistics remains as strong as ever.”
In a post on X/Twitter, the company said that around 20 of the cuts would come through natural attrition and it hoped the other 75 roles would be reduced through voluntary redundancy in the first instance.
In addition to losing business to competitors and exiting unprofitable contracts, Rossi blamed the company’s rising costs on external issues such as the war in Ukraine and its impact on energy prices and the cost of parts and materials.
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By GlobalData
He also highlighted DB Cargo UK’s parent company, DB Cargo AG, which he said had already informed its various European entities that it could no longer sustain the losses currently being incurred by the group.
As well as the talks with ASLEF, the company said it had also informed other unions of the proposed cuts and would enter into consultation with them if it was needed after reviewing other grade groups.
The development continues concern over costs at the company which had also recently announced the retirement of its electric Class 90 locomotives, also blaming economic pressure and the high running costs of the vehicles.
The company, which says it has been working on a five-year plan to improve, said it would instead focus its sustainability efforts on the use of biofuels.
