The Lufthansa Group has announced a long-term plan to reduce its administrative workforce by 4,000 positions by the year 2030. The German airline carrier stated that the move is part of a broader strategy to increase efficiency and profitability through digitalization and the integration of artificial intelligence into its operations.
Key Takeaways
- Lufthansa Group will eliminate 4,000 administrative roles over the next six years.
- The primary drivers for the reduction are artificial intelligence, digitalization, and process optimization.
- The plan aims to centralize control over its various airlines, including SWISS and Austrian Airlines, to improve profitability.
- Operational roles such as pilots and cabin crew are not the focus of these cuts.
- The German trade union Verdi has expressed opposition to the plan, citing rising aviation costs as a contributing factor.
Details of the Workforce Reduction
Lufthansa confirmed its intention to streamline its administrative functions as part of a significant corporate restructuring. The company, which employs approximately 103,000 people globally, will target roles that can be automated or have become redundant due to overlapping responsibilities across its various airline brands.
In a formal statement, the company explained its rationale. "The Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example due to duplication of work," the statement read. This review is a core component of its strategy to adapt to a changing business environment.
The reduction will be gradual, taking place over a period ending in 2030. The focus remains strictly on back-office and administrative positions, with the company aiming to avoid impacting its operational staff who are essential for daily flight services.
The Role of Technology in the Transition
Technology is at the heart of Lufthansa's new strategy. The airline group is banking on advancements in artificial intelligence and widespread digitalization to handle tasks currently performed by administrative staff. This aligns with a broader trend across major industries where companies are leveraging AI to automate routine processes and improve decision-making.
A Trend in German Industry
Lufthansa's announcement follows a similar move by another major German company. Industrial giant Bosch recently stated it would cut 13,000 jobs, also citing the increased use of artificial intelligence as a contributing factor to its restructuring efforts.
"The profound changes brought about by digitalization and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes," Lufthansa's statement continued. The airline expects these technologies to streamline everything from customer service back-end systems to internal financial reporting and human resources management.
A New Centralized Corporate Structure
The workforce reduction is part of a larger strategic shift within the Lufthansa Group. The company plans to implement a more centralized management structure to oversee its diverse portfolio of airlines, which includes SWISS, Austrian Airlines, Brussels Airlines, and the low-cost carrier Eurowings.
By bringing its subsidiaries under tighter central control, Lufthansa aims to standardize procedures, reduce operational costs, and ultimately boost group-wide profitability. This structural change is designed to make the entire organization more agile and responsive to market dynamics.
The Lufthansa Group Portfolio
The Lufthansa Group is one of Europe's largest airline conglomerates. Its main brands include:
- Lufthansa German Airlines
- SWISS International Air Lines
- Austrian Airlines
- Brussels Airlines
- Eurowings
As part of this new focus, specific business units are slated for expansion. Lufthansa intends to strengthen its Eurowings brand and grow its logistics and maintenance divisions. Notably, the maintenance unit is expected to expand its services into the defense sector, opening a new revenue stream for the company.
Economic Pressures and Union Opposition
Lufthansa's decision comes after a period of mixed financial performance. The airline experienced a significant travel boom following the end of COVID-19 restrictions, which led to strong profits. However, the year 2024 has presented new challenges, including high inflation, increased operating costs, and a series of disruptive staff walkouts that impacted its services.
The German trade union Verdi, which represents Lufthansa's office staff, has voiced its strong opposition to the job cuts. The union criticized the move, attributing the company's challenges to external economic factors rather than internal inefficiencies alone.
"German and European aviation policy bears a large share of the responsibility for this development," said union representative Marvin Reschinsky. He pointed to rising costs from airport fees and new environmental regulations as significant burdens on the aviation industry.
Verdi has called on the German federal government to provide greater support for the aviation sector to help mitigate these financial pressures and protect jobs. The union has pledged to oppose what it termed "drastic cuts," setting the stage for potential negotiations and labor disputes in the coming months.
The airline's plan highlights a critical juncture for the aviation industry, where legacy carriers must balance technological innovation and cost-cutting with labor relations and a complex economic landscape. The long-term success of Lufthansa's strategy will depend on its ability to implement these changes while maintaining operational stability and employee morale.