Lutz's regrettable decision brings on a wave of embarrassment - Railway Manager Escapes Public Humiliation: Richard Lutz Argues for Mercy
The German Railway (Deutsche Bahn) is currently in a state of transition, with the search for a new CEO ongoing following the early dismissal of Richard Lutz by the Federal Transport Minister, Patrick Schnieder. Lutz continues to act as caretaker CEO until a successor is found.
The German government has set clear goals for the company under new leadership, focusing on structural and personnel reorganization to make Deutsche Bahn more punctual, safer, cleaner, faster, leaner, more effective, and more economical. This shift aims to modernize the company and improve its operational efficiency and reliability, addressing prior criticisms about performance and modernization challenges.
Despite initial successes under Lutz's leadership, the railway has continued to face issues such as an oversized organization with double structures, congestion in major stations, broken trains, necessary new construction, and slow digitalization. The new CEO will need to tackle these challenges head-on, building new routes, further digitalizing the company, and continuing to reduce personnel.
The new CEO will also be working with a complex structure, a colossal organization with 220,000 employees and 33,400 kilometers of track. The railway's locomotive drivers' union, GDL, had previously demanded Lutz's dismissal, and many railway employees have lost confidence in him, questioning his ability to bring about a fresh start.
The overhaul project aims to improve the railway's infrastructure, but it only addresses a fraction of the problems. In July, punctuality on the German Railway was at a low of 60 percent despite the first corridor renovation. The new CEO will need to make the railway more reliable and punctual, a challenge that will require careful planning and execution.
The general overhaul of the railway network is still in its infancy, with the second major overhaul of the route between Hamburg and Berlin having recently started. The new CEO will be working under relatively little money, with a salary of 2.1 million euros in 2024. Despite savings programs, the DB incurred a loss of 760 million euros in the first half of the year.
This change in leadership presents an opportunity for the new CEO to transform the railway into a company that employees are proud of and passengers are happy to use. The new CEO will need to navigate a complex organization and address long-standing issues to achieve this goal.
[1] German Railway Awaits New CEO as Lutz Steps Down (BBC News, 2025) [2] Deutsche Bahn: Richard Lutz geht als CEO (Spiegel Online, 2025) [5] Deutsche Bahn: Neuer Vorstand fehlt noch (FAZ, 2025)
- The new CEO of Deutsche Bahn, upon their appointment, will be tasked with implementing a community policy focused on vocational training programs, aimed at enhancing the company's operational efficiency and modernizing its infrastructure.
- In the pursuit of improving Deutsche Bahn's business performance, the new CEO will need to collaborate closely with various industries, potentially securing necessary financing for the company's modernization projects, while ensuring the smooth operation of transportation services.
- To engender confidence and drive successful careers within the organization, the new CEO is encouraged to demonstrate strong leadership, fostering a culture of open communication, innovation, and continued improvements in safety, punctuality, and cleanliness.
