Internal restructuring
Location of affected unit(s)
Transportation / Storage
Land, Water And Air Transportation
Land Transport And Transport Via Pipelines
49 - Land transport and transport via pipelines

650 jobs
Number of planned job losses
Job loss
Announcement Date
29 December 2010
Employment effect (start)
1 January 2011
Foreseen end date


The Rail Cargo Austria (RCA), a subsidiary of the Austrian Federal Railways (ÖBB) plans to cut its workforce by 650, starting in January 2011. The restructuring is due to economic difficulties. With a turnover of EUR 797 million from ordinary activities in 2009, the RCA lost about EUR 85.4 million. Currently the company has a workforce of 11,000 employees.

ÖBB's CEO Mr Kern intends to improve the efficiency of the production unit which was created by merging the former shunting and traction units, making the job cuts necessary. However, two thirds of the workforce are civil servants, who are protected against dismissal and cannot be fired like private sector employees. Therefore, it is planned to partly transfer the affected workers within the ÖBB and provide those who are poorly trained with additional training.

Previous information on the case:

On 3 of December 2009, the ÖBB announced a restructuring plan. In the original statement the company estimated that within the next 5 years (by the end of 2015) the company will reduce its workforce by around 800 employees. The restructuring measure is supposed to increase the efficiency and flexibility of the company. The plan should save approximately EUR 40 million. In 2009, the state-owned ÖBB group employed about 42,000 workers.


  • 29 December 2010: Wirtschaftsblatt
  • 29 December 2010: Tiroler Tageszeitung


Eurofound (2010), Rail Cargo Austria, Internal restructuring in Austria, factsheet number 71636, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/71636.