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Lufthansa announces plan for major job cuts amid restructuring efforts

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Lufthansa announces plan for major job cuts amid restructuring efforts
Policy
Webp luf
Carsten Spohr Chief Executive Officer | Lufthansa Group

Lufthansa Group has announced plans to cut approximately 4,000 jobs by 2030 as part of a major restructuring effort aimed at increasing profitability. The job reductions will mainly affect administrative roles and are expected to occur primarily in Germany, although the cuts will be global.

The company stated that these changes are driven by "developments and structural adjustments," noting that it is reviewing which activities may no longer be necessary in the future. Lufthansa highlighted the impact of digitalization and artificial intelligence on its operations, explaining that these technologies will bring greater efficiency across many areas and processes.

"The company [has] reaffirmed its goal of adapting the Group's organizational and operational structure in order to reorganize cooperation and responsibilities within the Group. The aim is to achieve closer and more networked cooperation between group functions and airlines in order to leverage synergies and increase efficiency," Lufthansa said.

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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.

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