Lufthansa Group to Cut 4,000 Jobs and Pursue Operational Margin Target

Lufthansa Group announced plans to reduce its workforce by 4,000 employees across its subsidiaries Swiss, Austrian Airlines, and Brussels Airlines by 2030. The move is part of a broader restructuring program targeting an adjusted operating profit margin of 8% to 10% by 2028.

Currently employing around 103,000 people, the group reported a €1.6 billion operating profit in 2024, despite persistent inflationary pressures.

The staff reductions are intended to increase operational efficiency, notably through expanded digitalization and automation initiatives.

The announcement had an immediate impact on financial markets, with Lufthansa shares rising by 2%. CEO Carsten Spohr acknowledged that the group is trailing behind competitors in financial performance, reinforcing the need for restructuring.

As part of the plan, Lufthansa also intends to hire 1,500 administrative staff at international locations, indicating a shift in workforce allocation rather than an across-the-board reduction. The group also plans to add over 230 new aircraft to its fleet by 2030, suggesting continued investment in its operational capacity.

The job cuts have drawn criticism from labor unions, including Verdi, which cited concerns over fiscal and environmental pressures. Meanwhile, the pilots’ union is holding a vote on possible industrial action regarding pension reforms, following seven unsuccessful rounds of negotiations.

The next steps for Lufthansa involve continuing talks with unions and executing its efficiency program, while monitoring the potential market and operational impacts of workforce changes and fleet expansion.

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Ricardo Meier

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