Federal Minister of Transport Patrick Schnieder announces a fundamental restructuring of Deutsche Bahn following the departure of Deutsche Bahn CEO Richard Lutz. (Photo: BMV)
Federal Minister of Transport Patrick Schnieder announces a fundamental restructuring of Deutsche Bahn following the departure of Deutsche Bahn CEO Richard Lutz. (Photo: BMV)
2025-08-19

By firing railway chief Richard Lutz, Federal Transport Minister Patrick Schnieder inevitably drew the spotlight onto himself. He is now under pressure to quickly present a successor and thereby secure the group's ability to act. In view of the tense situation at Deutsche Bahn, the search for a new top leadership leaves no room for delay.

On 14 August 2025, Schnieder, the Chairman of the Supervisory Board Werner Gatzer, and Lutz agreed in Berlin to an early, amicable termination of the chairman's contract, which was actually due to run until 2027. Until his successor is arranged, Lutz will nevertheless continue to lead the group in a managerial capacity. He had led Deutsche Bahn since 2017.

According to the Federal Ministry of Transport, this step provides the framework for a comprehensive restructuring both structurally and in terms of personnel. Schnieder emphasized:

„First the strategy, then the personnel. Our concept is laid out in its basics; now it's a matter of finding the right person to implement it.”

Minister speaks of a “dramatic situation”

Schnieder justified the change with the “dramatic situation” at Deutsche Bahn. On-time performance in long-distance traffic had fallen from 78.5 percent when Lutz took office

in 2017 to 62.5 percent in 2024 — a symptom of the operational crisis at Deutsche Bahn, which in recent years has increasingly come to the fore.

Economic distress

For years the group has been in the red. In the first half of 2025 alone, it posted a pretax loss of 239 million euros. As early as 2024, Lutz had presented a restructuring concept that envisages cutting thousands of jobs and overhaul on around 40 particularly burdensome routes, including the important Hamburg–Berlin connection. The aim of the program was to make the network more able to perform and to reduce delays. The hoped-for success, however, has not materialized so far.

Criticism of the railway’s performance

On the contrary: Lower Saxony’s Transport Minister Grant Hendrik Tonne emphasizes that the problems at Deutsche Bahn have worsened — in particular, punctuality has continuously declined, and reliability can no longer be spoken of. He regards Schnieder’s personnel decision as an opportunity to address urgent deficiencies in rail transport. At the same time, he praised Lutz for initiatives such as the High-Performance Network and the founding of DB InfraGO AG. However, he stresses that structural problems cannot be solved by a new

leadership alone, and calls for a practical management that takes regional concerns seriously.

Expectations from the freight sector

The Freight Railways Network sees the retirement of the railway chief as a decisive turning point: Lutz did not consistently implement the promised return to the railway within the group. Instead of increasing the productivity of the rail companies, he relied on steadily growing government subsidies and thereby continued to accept unequal competitive conditions with road transport. The organization welcomes the paving of the way for a new strategy and calls on the Federal Minister of Transport for a clear and robust framework on which capable rail managers can build.

Managing Director Peter Westenberger stated:

„It is commendable that he is now clearing the path for a new strategy and new minds.“

EVG: Call for leadership stability

The Rail and Transport Union (EVG) warns of a leadership vacuum in light of the current burden and restructuring tasks at Deutsche Bahn. Chairman Martin Burkert stated:

„That Minister Schnieder is dismissing the railway chief is his right. That he does so without presenting a successor, we take note with surprise.“

With regard to the dramatic situation at the railway and the

upcoming restructuring measures, a leadership vacuum is out of the question. Burkert stressed that Schnieder will now be judged on how quickly a successor solution is found.

Succession and political framework conditions

Various press reports suggested that successors could also be sought among external executives from Austria or Switzerland. This could bring fresh impulses into the group. At the same time, the question remains what the severance payout will be given the early termination of the contract. Observers consider a seven-figure amount possible, even if a contractual cap is provided.

Moreover, the political dimension matters: In the coalition agreement between the Union and SPD it is already enshrined to reorganize Deutsche Bahn's executive board and supervisory board and equip them with more expertise. The transition now initiated is also seen in this context.

New course announced

Schnieder announced that on 22 September 2025 he will present his “Agenda for Satisfied Customers on the Rail,” which is intended to set out the key points of a rail reform. The Supervisory Board is, according to its own statements, preparing a selection process for a new CEO. Werner Gatzer stresses that thoroughness and care are more important than speed in