Lufthansa to Implement AI, Resulting in 4,000 Job Cuts by 2030
German aviation giant Lufthansa Group has announced plans to cut 4,000 jobs worldwide by 2030. This major restructuring initiative aims at improving profitability and operational efficiency. The cuts, representing roughly 20% of the airline’s administrative workforce, will primarily target administrative positions rather than operational roles such as pilots and cabin crew.
The job reductions are driven by the airline’s increasing adoption of artificial intelligence and automation technologies. These technologies aim to streamline processes and eliminate duplicate work across its subsidiaries. The subsidiaries include Swiss, Austrian Airlines, and Brussels Airlines. CEO Carsten Spohr acknowledged that the group is trailing behind competitors in financial performance. The company’s operating margin stood at 4.4% in 2024, well below its strategic target of 8%.
Despite the workforce reductions, Lufthansa plans to hire 1,500 administrative staff at international locations. This indicates a strategic reallocation of resources. The announcement has already sparked positive reactions in financial markets. Lufthansa shares rose by 2% following the news.
Source: CNBC