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German rail union slams Deutsche Bahn as a 'money-laundering machine' while backing CEO's reforms

A scathing critique of Deutsche Bahn's financial maze—yet hope for change under new leadership. Why the rail giant's CEO is winning unlikely allies amid turmoil.

The image shows an old postcard with a picture of a train station in Germany. The postcard features...
The image shows an old postcard with a picture of a train station in Germany. The postcard features a building with windows, a fence, a street pole, a group of people standing on the ground, some vehicles on the road, some trees, and a cloudy sky. The text on the postcard reads "Bahnhof Germersheim".

German rail union slams Deutsche Bahn as a 'money-laundering machine' while backing CEO's reforms

Mario Reißen, head of the German Train Drivers' Union (GDL), has sharply criticised Deutsche Bahn (DB) for its financial practices. He described the company's complex network of subsidiaries as a 'money-laundering machine'. At the same time, he backed CEO Evelyn Palla's recent efforts to restructure the struggling rail operator.

Reißen's criticism focused on DB's internal billing system and its sprawling corporate structure. He claimed the company had created hundreds of subsidiaries under the DB AG umbrella, with numbers peaking at over 1,000 in the past. While the total has since been cut to around 600, current figures from mid-2025 list 146-148 connected firms. These operate across infrastructure, logistics, and services—including DB InfraGO AG, formed in 2024, and DB Cargo's 17 European subsidiaries.

Despite his harsh words for the company's financial opacity, Reißen praised Palla's management decisions. He approved of her move to halve the size of top leadership, arguing it would streamline operations and lift productivity. He also supported the dismissals of Sigrid Nikutta, former head of DB Cargo, and finance chief Karin Dohm, calling consistency a hallmark of strong leadership. Reißen remained frustrated, however, over Dohm's initial hiring. He claimed the board knew she lacked the right qualifications, raising concerns about future disputes. Looking ahead, he urged Palla to focus on concrete reforms within the rail system rather than bureaucratic reshuffling.

Reißen's remarks highlight ongoing tensions over DB's financial transparency and leadership changes. The company now operates with fewer subsidiaries than before, but its structure remains complex. Palla's restructuring plans will likely face further scrutiny as she pushes to improve efficiency and accountability.

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