Lufthansa Plans 4,000 Job Cuts by 2030 Amid Economic Challenges

German airline group Lufthansa has announced plans to cut 4,000 jobs by 2030, primarily targeting administrative positions. This decision reflects the ongoing economic difficulties in Germany, which is currently facing its second consecutive year of recession. The airline's workforce, which stands at approximately 103,000 globally, will see nearly four percent of its staff affected by these layoffs.

The job reductions are part of Lufthansa's strategy to enhance efficiency through digitalisation and automation. The company aims to streamline operations and reduce costs, particularly in light of rising energy prices and increased competition. The airline has faced significant financial pressures in recent years, leading to two profit warnings last year and a revision of its profit margin goals.

In conjunction with the job cuts, Lufthansa plans to expand its fleet by adding over 230 new aircraft by 2030. This move is intended to improve operational efficiency and profitability across its various subsidiaries, including Eurowings, Austrian Airlines, and ITA Airways. The airline has set a new target of achieving an adjusted operating margin of 8% to 10% by 2028, up from its previous goal of 8%.

Lufthansa's restructuring efforts come as part of a broader turnaround programme aimed at ensuring long-term stability and growth. The company has stated that it will consult with social partners during the job reduction process, particularly as it seeks to manage costs effectively across its operations in Germany and other countries. The airline's focus on digitalisation and artificial intelligence is expected to lead to greater efficiency, reducing the need for certain administrative roles in the future.

As the aviation industry continues to evolve, Lufthansa's actions highlight the challenges faced by major companies in adapting to changing economic conditions and technological advancements.