Department says no redundancies as a result but sources believe jobs will go in push to cut posts and overhaul railways

Hundreds of civil servants are being transferred from the Department for Transport to the state-owned rail operator as the government looks to cut Whitehall posts and overhaul the railways.

Ministers have been pushing to find savings from across the civil service, but a government spokesperson denied there would be immediate redundancies in what bosses told staff was a “critical phase” of the creation of Great British Railways (GBR).

However, industry sources believe jobs will go, as employees consider their future outside the civil service, and the government attempts to cut costs and reduce duplication in a nationalised railway.

A message to staff from two rail director generals, Richard Goodman and Alex Hynes, said the DfT was “entering an exciting and critical phase of rail reform” and had “updated colleagues involved in the moves about what this approach” would mean for them.