2008-04: SBB plans widespread cost-cutting and job losses in a bid to counter the growing deficits at its freight business.
In 2006 the business had lost SFr37-3m, and by the middle of last year it was clear that the future was looking grim. SBB Cargo chief Daniel Nordmann resigned in August, passing the helm to his deputy Nicolas Perrin, but the situation had already deteriorated badly. The 2007 figures, which were due to be announced in Zürich on April 2, are little short of disastrous. SBB Cargo's operating loss rose to a 'massive' SFr87-9m, to which must be added extraordinary items and write-offs totalling SFr102-5m, making a total of SFr190-4m.
In a bid to stem the tide of red figures, SBB set up a taskforce last summer (RG 11.07 p703). This recommended a recruitment ban, a halt to investment and renegotiation of SBB Cargo's performance contract; these were implemented in the autumn. The taskforce also prepared what SBB President Thierry Lalive d'Epinay described as 'a thorough analysis' to serve as the basis for decisions. Following intensive discussions with government, cantons, trade unions and other interested parties, SBB drew up a package of changes expected to save SFr70m a year, although restoring SBB Cargo's financial health is expected to take at least two years.
The entire business is affected, with overheads at the Basel headquarters where SBB Cargo moved in 2001 a top target for economies. The organisation will be slimmed down, work processes improved and 300 jobs lost, of which 65 are posts not filled since recruitment was halted last year. Sales and order processing will be concentrated at Basel, along with the activities of the customer service centre at Fribourg which opened in 2000; 114 staff will be relocated, but this change alone will account for 51 of the 300 job losses.
