Lufthansa Layoffs: Airline Plans To Fire 4,000 Employees By This Year; What’s The Reason Behind This Major Step?
By Priya Raghuvanshi
Copyright timesnownews
As part of a major strategic overhaul, German airline group Lufthansa has announced that it will eliminate 4,000 positions by the end of the decade. The move, revealed through a report by AFP, comes amid growing pressure on the airline to modernise its operations and reduce costs in response to technological advances and Germany’s struggling economy. While the Lufthansa Group currently employs over 103,000 people across its global network, the majority of these job cuts will target back-office and administrative roles. Operational staff, including pilots, cabin crew, and ground personnel, are expected to be largely unaffected, the report added. Navigating A Rough Economic Landscape The timing of Lufthansa’s announcement is far from incidental. Germany is currently grappling with its second consecutive year of economic contraction. Unemployment levels have climbed to a ten-year high, and several of the country’s largest companies are feeling the pinch of soaring energy prices, slow technological progress, and stiff competition from China. Lufthansa’s decision follows closely on the heels of another major workforce reduction by Bosch, which disclosed plans to cut 13,000 jobs worldwide. Together, these announcements paint a broader picture of how even longstanding industrial powerhouses are re-evaluating their staffing needs. Embracing A Digital Future The airline’s restructuring plan is deeply rooted in the growing influence of digitalisation and artificial intelligence. As per the report, in a company statement, Lufthansa noted: “The Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example, due to duplication of work.” Further emphasising its tech-driven approach, the company added, “The profound changes brought about by digitalisation and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes.” This shift signals a reduced reliance on manual processes in favour of automated systems, the report said. Strategic Goals Beyond Headcount Reductions Lufthansa isn’t just tightening its workforce; it’s also laying out clear financial ambitions. As part of its roadmap from 2028 to 2030, the company has set a target for an adjusted operating margin of between 8 per cent and 10 per cent, states the report. These goals highlight a broader effort to streamline operations while staying competitive in an evolving global aviation industry. Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world.