ČD Cargo, the freight subsidiary of Czech Railways (ČD), has announced a restructuring plan that involves the redundancy of 700 staff by the end of this year.
Freight traffic at ČD Cargo is expected to total 45 million tonnes this year, but with no immediate improvement in the company’s fortunes anticipated next year, this could fall to 40 million tonnes, according to ČD Cargo’s board of directors. While its parent company reported a profit in 2024, ČD Cargo made a loss of €38m, a significant drop from a profit of €29m the year before.
ČD Cargo recorded a fall of 3.2% in all freight carried in the first half year of this year. This includes a fall of 5.3% in freight carried on the Czech national network. The company blames this on structural changes to the European economy, notably a decline in the transport of coal, metals and chemicals, as well as the poor performance of single wagonload traffic.
The business has already cut around 1000 jobs since last year. The latest round of redundancies will focus on operational staff, followed by back-office employees, and will leave the company with a workforce of around 4600. At the same time, the fleet will be downsized, with an unspecified number of locomotives withdrawn and wagons to be scrapped.
“To retain our competitive advantage and stabilise ČD Cargo for the future, we must pursue the next stage of restructuring, even though this means downsizing,” says ČD Cargo CEO, Tomáš Tóth.
