Lufthansa is cutting 4,000 jobs, nearly 4% of its workforce, by 2030 as part of a major restructuring effort to boost efficiency and profitability.
The job cuts will primarily affect administrative positions in Germany. According to the airline group, the restructuring efforts aim to improve competitiveness and achieve an adjusted operating margin of 8-10% by 2028-2030.
The airline’s restructuring efforts are driven by the need to adapt to changing market conditions and improve its financial performance. Germany’s economic downturn has significantly impacted Lufthansa, with the country facing a second straight year of recession and unemployment at a decade high. The job cuts will help the airline reduce costs and improve its competitiveness.
The majority of the job cuts will be in administrative roles in Germany. The airline group aims to reduce bureaucracy and improve efficiency through digitalization and automation. According to the company, the restructuring efforts will enable it to better respond to changing market conditions and improve its financial performance.
Lufthansa’s financial targets include achieving an adjusted operating margin of 8-10% by 2028-2030 and adjusted free cash flow of over 2.5 billion euros ($2.9 billion) per year. The airline group is confident that its restructuring efforts will enable it to achieve these targets and improve its competitiveness.
The job cuts will be completed by 2030, and the airline group is working to minimize the impact on its employees. Lufthansa is offering support to employees who will be leaving the company, including training and outplacement services.
The airline’s restructuring efforts are part of a broader industry trend, with many airlines seeking to improve their efficiency and competitiveness in a challenging market. Lufthansa’s efforts to reduce costs and improve its financial performance are expected to position the airline for long-term success.
Lufthansa’s commitment to its employees and customers remains unchanged, despite the job cuts. The airline group is working to ensure that its services continue to meet the needs of its customers, while also improving its financial performance.