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Lufthansa in crisis mode: thousands of administrative jobs at risk!
Lufthansa is planning drastic savings, cutting 20% of administrative positions due to financial difficulties and global challenges.
Lufthansa in crisis mode: thousands of administrative jobs at risk!
Lufthansa is facing a drastic change as the company plans to cut around 20 percent of its administrative positions. According to recent reports from Cosmo The exact number of positions affected has not yet been determined, but insiders speak of several thousand jobs that could be lost. The group currently employs almost 103,000 people.
The official announcement of the job cuts is expected to take place next Capital Markets Day. Lufthansa cites significant cost problems as the main reason for this step. Despite a gradual industry recovery following the COVID-19 pandemic, the company has not yet reached pre-pandemic productivity and capacity in 2019.
Financial difficulties
The target return on sales of 8 percent remains unattained, while the margin last year was 4.4 percent. Competitors such as IAG and Air France-KLM, however, were able to achieve higher margins, with IAG at 13.8 percent and Air France-KLM at 5.1 percent. The core Lufthansa Airlines division recorded an operating loss of 553 million euros in the first quarter of 2025, making the need for comprehensive restructuring even clearer.
The “Turnaround” restructuring program, which was launched more than a year ago, includes over 700 measures to reduce costs and increase sales. A central component of this program is the planned job cuts in administration, which are aimed at stabilizing the company's financial situation.
Industry context
The challenges facing Lufthansa reflect a comprehensive change in the aviation industry. Pressure to reduce emissions is growing due to increasing regulations and increasing awareness of climate change. At the same time, demand for business travel, which was below 2019 levels for a long time, has barely recovered. In contrast, the tourism sector is booming, creating new opportunities for airlines.
Digital innovations, such as artificial intelligence and automation, offer opportunities to increase efficiency and reduce costs. Nevertheless, the industry is increasingly grappling with geopolitical challenges, such as the Ukraine conflict, which are driving up fuel and raw material prices. Competition between Western manufacturers such as Airbus and Boeing and the rapidly growing competition from China has also become fiercer.
The aviation industry is therefore undergoing a transformation process in which companies like Lufthansa have to reorient themselves. While airlines expect strong profits in 2024, it is crucial for them to develop new routes and further optimize operating costs. In the long term, they must also rely on sustainable aviation fuels and work with newer technologies such as electric or hydrogen-powered aircraft.
In this ever-changing landscape, the successful implementation of restructuring measures will be crucial to Lufthansa's competitiveness and could have an impact on the entire industry. For more information about these developments in the aviation industry, you can also Mirror and Aluminum report visit.