Deutsche Bahn CEO Palla Presents New Strategy with Three Phases Through 2035

The restructuring is divided into three phases. The first phase covers the current year, in which the foundation for the realignment is to be laid. From 2027 to 2030, the focus will primarily be on the renovation of the dilapidated rail network. By 2030, cost savings of 500 million euros per year in material and personnel costs are also planned.

In the third phase through 2035, passengers should then already feel noticeable improvements in quality and punctuality; the "renovation marathon" is to be completed in this phase. In 2035 – the year of the 200th anniversary of the railway – punctuality in long-distance services of 80 percent is anticipated. As an interim step, DB long-distance punctuality is to rise to 69 to 72 percent by 2030.

Slimmer Group and New Responsibility

The reform also envisages a radical streamlining at headquarters and at the management levels. The corporate leadership comprises around 3,500 positions, of which roughly 30 percent are to be cut. A central steering unit is to be retained, but in the future, regional units will decide how to meet the targets. Regional managers will receive more responsibility and will be measured on transport quality as well as key performance indicators.

Financially, Deutsche Bahn expects a significant improvement. DB anticipates that the Group's operating result will improve by over 1 billion euros to 1.7 billion euros by 2030. For the first time in a long while, the operating result after taxes will be positive. By 2030, tangible progress is also expected in the renovation of the rail network.

Change at the Financial Helm

At the same time, a change at the financial helm was announced. Michael Obrowski, CFO of Volkswagen Commercial Vehicles since 2021 and previously head of Group Controlling at Volkswagen AG for five years, will become the new Chief Financial Officer of Deutsche Bahn on September 1. The position had been vacant since March, after the then CFO Karin Dohm left the company after just under four months. According to the Süddeutsche Zeitung, she is said to have affronted many people during this short time – including politicians and employee representatives. Deutsche Bahn officially stated that the two sides had parted "by mutual agreement."

Passenger numbers have recently risen despite the crisis, which the company says underscores the sustained strong interest in rail travel. Palla said the goal is to build a high-performing railway over the coming years. The report was broadcast on June 25, 2026 on Deutschlandfunk.

More Realistic Goals Instead of Grand Promises

The priorities of the new strategy are reliability, proven operational quality, and financial viability. This fundamentally shifts the tone set by the CEO: away from grand growth promises, toward a more honest picture of what is achievable – and toward the admission that the 80-percent target will not be reached before the course of the 2030s.

With the three-stage reform, Deutsche Bahn combines short-term consolidation, medium-term infrastructure investment, and long-term quality improvements. Whether these ambitious plans succeed will also depend on whether policymakers and the industry support the company on its path to the anniversary year 2035. The railway chief made it explicitly clear that, with the support of policymakers and the industry, DB would achieve 80 percent punctuality in long-distance services.