Lufthansa Plans Major Job Cuts to Boost Profitability
Lufthansa is set to announce significant job cuts, with up to 20% of its administrative staff potentially affected. The move comes as the airline aims to centralise management and improve profitability, which has lagged behind key European rivals like United, Southwest, Delta, Frontier, Spirit, and American Airlines. Shares in Lufthansa rose following reports of the planned cuts.
The German airline employs around 15,000 office staff, forming part of its total workforce of approximately 103,000. The exact timing of the planned reduction remains unclear, with the airline yet to confirm details. Lufthansa's profits fell nearly 20% in 2024, impacted by staff walkouts and aircraft delivery delays.
The airline is due to update investors on its strategy and outlook on Monday. Aviation expert Gerald Wissel warns that such a large-scale layoff may pose social challenges. Meanwhile, the Verdi union has vowed to resist 'drastic cuts' during the next round of collective bargaining.
Lufthansa's planned job cuts, affecting thousands of employees, are part of its restructuring efforts to boost profitability. The airline aims to centralise management and reduce costs. However, the move has sparked concerns about potential social challenges and opposition from labour unions.
