AnsaldoBreda has chalked up losses of around €1bn during the last three years, which have been covered by its parent company Finmeccanica. It has also been dogged by the continuing long-running disputes regarding contracts to supply IC4 trains to Danish State Railways (DSB) and high-speed trains to the Dutch High Speed Alliance.

AnsaldoBreda currently employs 2232 staff in four locations: Pistoia, Naples, Reggio Calabria, and Palermo. Under the plan drawn up by managing director Mr Maurizio Manfellotto, 1388 employees will be made redundant during the next three years. Manfellotto forecasts annual turnover in excess of €700m during the same period.

There has been speculation in the Italian press that Italian State Railways (FS) might acquire a stake in the company as FS CEO Mr Mauro Moretti has expressed his concern at the possible demise of Italy's largest train builder.