Lufthansa planning thousands of job cuts, sources say
FRANKFURT: Lufthansa is planning to cut thousands of administrative staff as the German aviation group seeks to reduce costs following a sharp fall in earnings, sources close to the matter said on Friday (Sep 26).
The group’s profits tumbled nearly a fifth in 2024 due to a combination of walkouts and aircraft delivery delays. Two sources confirmed that Lufthansa was preparing to axe up to 20 per cent of its administrative workforce.
JOB CUTS TARGET OFFICE STAFF
Handelsblatt daily reported that Lufthansa employs about 15,000 office staff. The airline’s total workforce numbers around 103,000.
Lufthansa, which also owns Eurowings, Austrian, Swiss and Brussels Airlines, declined to comment when contacted. Its shares nevertheless rose more than 3 per cent in Frankfurt after reports of the planned cuts.
The company is expected to present its strategy and outlook to investors on Monday.
UNION REJECTS CUTS
Aviation expert Gerald Wissel from Airborne Consulting said Lufthansa wanted to centralise its management. "In this context, the job cuts at the office level seem justified, but it will still be difficult to lay off so many employees in a socially acceptable manner," he told AFP.
The Verdi union, which represents some Lufthansa workers, said it would not accept "drastic cuts". "We will use the next round of collective bargaining to combat any such measures," union representative Marvin Reschinsky told AFP.
LOSING GROUND TO EUROPEAN RIVALS
Lufthansa has lost ground to key competitors IAG and Air France-KLM, which have both outperformed the German airline group in terms of profitability. The gap has added pressure on the German carrier to accelerate restructuring and improve efficiency.
Analysts say the upcoming investor presentation will be a crucial test of Lufthansa’s ability to convince markets it can turn around performance without sparking major labour disputes.
