Lufthansa planning thousands of job cuts

"Lufthansa is planning to cut thousands of administrative staff as the German aviation giant seeks to reduce costs following a fall in earnings, sources close to the matter said Friday. The group's profits tumbled nearly a fifth in 2024 due to problems ranging from a string of walkouts to aircraft delivery delays. Two sources, speaking on condition of anonymity, confirmed to AFP that Lufthansa was planning to axe up to 20 percent of its administrative staff."

"The Handelsblatt financial daily, which also reported on the job cuts, said the group employs some 15,000 office staff. Its total workforce currently numbers around 103,000. Lufthansa -- whose carriers also include Eurowings, Austrian, Swiss and Brussels Airlines -- declined to comment when contacted by AFP. But the group's shares jumped over three percent in Frankfurt after reports emerged of the plans, which follow growing investor concerns about the airline giant's flagging profitability."

"Gerald Wissel, an aviation expert at 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"."

Lufthansa plans major administrative staff reductions to reduce costs after a near-20 percent fall in profits in 2024. The profit decline followed a string of walkouts and aircraft delivery delays. Sources say up to 20 percent of administrative staff could be axed; the company employs about 15,000 office staff out of a roughly 103,000 total workforce. The group’s carriers include Eurowings, Austrian, Swiss and Brussels Airlines. Shares rose over three percent after reports of the plans. An aviation expert said management centralisation motivates the cuts, while the Verdi union vowed to oppose drastic layoffs through collective bargaining. Competitors IAG and Air France-KLM have outperformed Lufthansa in profitability.

Read at The Local Germany