When a state-owned rail carrier lays off half its workforce to achieve profitability, while an aircraft factory is simultaneously built to replace the inefficient railway, cracks in the European economic model become visible.
The Radical Cure for the German Patient. German industry, once a synonym for stability, is undergoing shock therapy, with the situation at DB Cargo becoming its symbol. The company's new CEO, Bernhard Osburg, leaves no illusions about the scale of necessary changes, announcing the elimination of 6,200 full-time positions. This decision means laying off 44% of the personnel in the company's German structures. The cuts will cover the administration, planning, production, and sales departments, which in practice means dismantling the carrier's current operating model.
The board of DB Cargo argues that the drastic reduction is essential to achieve so-called black zeros (breaking even) by 2026. This strategy is a direct response to declining demand from key sectors of the German economy: the chemical, automotive, and steel industries. The company plans to shift its focus to the European market, integrating dispatch processes at an international level, which is intended to allow it to survive without a state lifeline.
The paradox of the situation lies in the fact that at the very moment the freight rail giant is scaling back, construction of the Deutsche Aircraft factory is beginning at Leipzig/Halle airport. The manufacturer intends to produce the D328eco model, a turboprop aircraft for 40 passengers. Experts, such as Professor Hartmut Fricke from the Dresden University of Technology, point out directly: alternative means of transport, including rail, have lost their reliability. The market is therefore returning to regional flights, which until recently were considered economically and ecologically unjustifiable.
DB Cargo's profitability problems have lasted for a decade, and the European Commission has repeatedly investigated the public aid granted to the company by the Deutsche Bahn group. Meanwhile, the short-haul flight market in Germany collapsed after 2020 as a result of the pandemic and the development of the ICE high-speed rail, which now, paradoxically, is losing its competitiveness.
Planned Job Reductions at DB Cargo: Current employment: 14000, Number of layoffs: 6200, Target employment: 7800 „Wyraźniej kierujemy sprzedaż, planowanie, dyspozycję i produkcję na poziom europejski i budujemy DB Cargo jako wiodącego europejskiego gracza na torach.” (We are more clearly directing sales, planning, dispatching, and production to the European level and building DB Cargo as a leading European player on the tracks.) — Bernhard Osburg
Algorithmic Exploitation and Digital Monopolies. The pressure for financial results is not limited to heavy industry; in the digital services sector, it takes the form of ruthless cost optimization or aggressive monopolization. The Italian prosecutor's office in Milan has placed the local branch of Deliveroo under judicial control, revealing systemic exploitation referred to as caporalato. Investigators found that up to 20,000 couriers worked for rates as low as 3.77 euros per delivery, an amount 90% below the poverty threshold.
A business model based on working 13 hours a day without breaks or insurance was not a system error, but—as investigating judges claim—an element of a cost-minimization strategy. The prosecutor's office has extended its actions to contracting entities such as McDonald's, Burger King, and the Esselunga supermarket chain. This case shows that in the search for margins, corporations are ready to push the boundaries of legal and ethical responsibility as far as state oversight allows.
On the other side of the globe, in Tokyo, the Japanese Fair Trade Commission conducted a search at the offices of Microsoft Japan. The regulator is investigating whether the tech giant abused its position by making it difficult for Azure platform customers to use competitors' solutions. In the fight for a market dominated by powerful keiretsu groups, Microsoft is resorting to methods that may violate antitrust laws. These actions are part of a global trend where Amazon and Google are also fighting for every percentage point of cloud market share.
3.77 euros — average delivery rate revealed during the Deliveroo investigation
Fiscal Helplessness of the State. In the face of corporate restructuring and market pathologies, states seem to have their hands tied due to their own budgetary problems. In the UK, Chancellor Rachel Reeves is preparing to present economic forecasts, clearly stating that this will not be a new budget. The Labour government is avoiding sudden moves, even though the Institute for Fiscal Studies warns of a budget gap of £30 billion, resulting from a decline in net immigration and lower tax revenues.
The lack of fiscal space blocks the possibility of reforming the student loan system, known as Plan 2. Despite pressure from Kemi Badenoch and Labour Party MPs, Education Secretary Bridget Phillipson is defending the freeze on the repayment threshold. Prime Minister Keir Starmer's government, instead of intervening, is forced to manage the shortage, hoping for future GDP growth. This situation perfectly illustrates how budget constraints paralyze the state's ability to correct market inequalities.
One could argue that DB Cargo's actions or the investment in Leipzig are natural market processes—so-called creative destruction that eliminates inefficient entities. However, the scale of layoffs in the German railway and the return to turboprop technology suggest infrastructural regression rather than progress. Furthermore, basing the future of regional aviation on sustainable fuels (SAF), whose availability is uncertain, bears the hallmarks of a risky gamble rather than a well-thought-out strategy.
Perspectives for the coming years are painted in colors of cool pragmatism. The DB Cargo restructuring plan is to be approved by February 2026, and the cost structure adjusted by 2030. At the same time, the British government will have to face the consequences of a labor shortage, and Japanese regulators will try to tame the digital giants. An era is coming where efficiency is measured not by innovation, but by the ability to cut costs and eliminate competition.
„It is just a forecast, rather than a fiscal event like the budget.” — Rachel Reeves
Perspektywy mediów: Left-wing media may focus on the exploitation of Deliveroo workers and the social costs of layoffs at DB Cargo. Right-wing media may emphasize excessive regulation as the cause of economic problems and the necessity of market verification for unprofitable companies.