The Dutch railway operator, Nederlandse Spoorwegen (NS), has announced plans to reduce its workforce by 500 positions at its headquarters through natural attrition as part of a cost-saving strategy. Additionally, train fares will increase next year.
Challenges Post-Pandemic
The recent half-year financial report from NS highlights a challenging period for the company. The number of passengers remains consistently lower than before the COVID-19 pandemic, while operational costs have significantly increased. These rising costs are due to higher wages, more expensive energy, and the hiring of additional staff.
To mitigate these financial pressures, NS had planned to increase ticket prices by 8.7% this year. They postponed this hike after receiving a one-time subsidy from the government. Since this subsidy will not be available next year, NS states it has no choice but to implement the fare increase.
The exact price of tickets for the coming year is still uncertain, but there will be a substantial rise. The prices will go up by at least 8.7%, with an additional increase to account for this year's inflation, the exact rate of which is yet to be determined.
Impact of Remote Work
In the first half of this year, NS reported an operational loss of 109 million euros. To address this, the company will implement several cost-saving measures. These include reducing the number of full-time positions, downsizing office space, and simplifying IT systems. NS is also considering scaling back the refurbishment of trains, though regular maintenance schedules will remain unaffected.
Despite an increase in train usage compared to the previous year, with passenger kilometers rising by 6.4% in the first half of this year, NS continues to feel the impact of the pandemic. The shift towards remote work means that the number of passengers is still only 94% of what it was in 2019, the last year before the pandemic. NS does not expect passenger numbers to return to pre-pandemic levels anytime soon.