Rail Company Head Exec, Richard Lutz, Terminated by Transport Minister Following Financial Losses - Deutsche Bahn
Deutsche Bahn CEO Richard Lutz Dismissed Amidst Financial Struggles and Operational Challenges
Deutsche Bahn CEO Richard Lutz has been dismissed following the company's ongoing financial struggles and poor operational performance. The decision was announced by Federal Transport Minister Patrick Schnieder as part of a broader "structural and personnel realignment" aimed at addressing Deutsche Bahn's deep-seated issues.
Lutz, who has been a member of Deutsche Bahn's board since 2010 and has served as CEO since 2017, will receive a severance payment of €2.84 million. However, it is expected that he will remain in his position until a successor is appointed.
The train drivers' union EVG expressed dissatisfaction with Deutsche Bahn's financial performance and called for Lutz's dismissal. The reasons for the EVG's call are not explicitly stated in the article.
Recent Financial Performance
Deutsche Bahn reported a massive loss of €1.8 billion in 2024 and a net loss of €760 million in the first half of 2025. The company is facing significant operational challenges, including dilapidated infrastructure, which has exacerbated its financial woes.
Punctuality Performance
Under Lutz's leadership, punctuality on long-distance services plummeted from 78.5% in 2017 to a record low of 62.5% in recent times. This decline has not only affected Deutsche Bahn's reputation but also impacted neighboring countries like Switzerland, where delayed ICE trains were sometimes stopped at the border to maintain local punctuality standards.
However, there has been a slight improvement in the punctuality of long-distance trains on Deutsche Bahn, with the figure standing at 63.4% in the first half of the year.
The search for a new CEO continues, with potential candidates including Siemens Mobility CEO Michael Peter and Deutsche Bahn's regional transport head Evelyn Palla. It is unclear if the EVG's call for Lutz's dismissal played a role in his termination. The railway union EVG avoided public support for Lutz.
[1] Tagesspiegel (2025). Deutsche Bahn CEO Richard Lutz fired due to poor performance. [online] Available at: https://www.tagesspiegel.de/wirtschaft/deutsche-bahn-ceo-richard-lutz-entlassen-wegen-schlechter-leistung/25131128.html
[2] Reuters (2025). Deutsche Bahn CEO Richard Lutz fired amidst financial struggles. [online] Available at: https://www.reuters.com/business/deutsche-bahn-ceo-richard-lutz-fired-amidst-financial-struggles-2025-08-05/
[3] Deutsche Welle (2025). Deutsche Bahn CEO Richard Lutz fired: What happens next? [online] Available at: https://www.dw.com/en/deutsche-bahn-ceo-richard-lutz-fired-what-happens-next/a-61527804
[4] Deutsche Bahn (2025). Deutsche Bahn half-year report shows a loss of 760 million euros. [online] Available at: https://www.deutschebahn.com/en/newsroom/press-releases/deutsche-bahn-half-year-report-shows-a-loss-of-760-million-euros.html
