Lufthansa's Massive Restructuring: 4,000 Jobs Cut, Fleet Renewal, Union Threatens Strike
Lufthansa is undergoing significant restructuring, aiming to streamline operations and boost profitability. The airline plans to cut around 4,000 administrative jobs by 2030, mainly in Germany, while also investing in fleet renewal and expansion. Meanwhile, the pilots' union is threatening a strike over pension demands.
The job cuts, targeting efficiency gains through digitalisation and automation, will not affect operational activities such as flight operations. Lufthansa aims to achieve an operating profit margin of 8-10% at EBIT level by 2028-2030, along with an annual free cash flow of over €2.5 billion. The company also plans to invest in a major fleet renewal, with over 230 new aircraft, and strengthen its network through closer cooperation among its airlines.
In addition to these changes, Lufthansa's subsidiaries are set to grow. Eurowings will expand its leisure offerings, Lufthansa Technik will focus on defence contracts, and Lufthansa Cargo plans to expand its cargo hub. The company targets a return on capital employed of 15 to 20 percent.
The pilots' union, Vereinigung Cockpit, has threatened a strike over company pension demands. A ballot on industrial action ends on Tuesday. Lufthansa will consult with social partners, including the works councils and trade union ver.di, to negotiate an interest reconciliation and a social plan to mitigate economic disadvantages for affected employees.
Lufthansa's restructuring plan, aiming to improve efficiency and profitability, is set to reshape the airline's operations and workforce. The company's subsidiaries also have growth plans, while the pilots' union threatens a strike over pension demands. The outcome of these changes and the potential strike will shape the future of Lufthansa.
