Lufthansa announces plan for major job cuts amid restructuring efforts

Some employees were informed about the planned cuts internally last week, but this is the first time Lufthansa has publicly detailed its intention to reduce thousands of positions by decade’s end. The airline has committed to carrying out these reductions "in consultation with social partners."

Reuters reported that Lufthansa told investors it would pursue a turnaround after issuing two profit warnings last year. Despite operating fewer flights with a smaller fleet, the carrier employs 7% more people than it did in 2019. CEO Carsten Spohr reportedly told staff: "we cannot afford to maintain our work at the cost that we have now because we don't have the margins to invest."

Bloomberg described these layoffs as Lufthansa’s largest since those made during the COVID-19 pandemic. According to Lufthansa, "digitalization, automation, and process consolidation" will make such reductions possible.

Beyond job cuts, Lufthansa’s strategy includes promoting integration among its network airlines—Austrian Airlines, Brussels Airlines, ITA Airways, Lufthansa itself, and SWISS—to clarify responsibilities, improve collaboration, speed up decision-making processes, and boost efficiency. As part of this plan, 230 new jets—including 100 long-haul aircraft—will be added across group airlines by 2030.

Additionally, Eurowings will continue its development as a point-to-point carrier following successful restructuring efforts; it is set to integrate 40 new Boeing 737 MAX narrowbody planes into its fleet. Overall financial targets include an adjusted EBIT margin of 8-10% and adjusted free cash flow exceeding €2.5 billion ($2.93 billion) annually.