Lufthansa (XFRA-LHA), Europe’s largest airline group, announced a sweeping restructuring plan aimed at boosting profitability and modernizing its fleet. The company will cut 4,000 administrative jobs by 2030, marking its largest wave of layoffs since the COVID-19 crisis.
The move comes as Lufthansa prepares to invest in 230 new aircraft, including 40 Boeing 737-8 MAX jets for its budget subsidiary, Eurowings. The airline says the job cuts primarily in Germany, will be offset by increased automation and digitalization of administrative processes.
The restructuring is expected to improve Lufthansa’s operating margin, which has been revised upward from 8% to approximately 10% of revenue. Lufthansa employs over 100,000 people, including 15,000 in administrative roles. The company faced setbacks last year due to strikes and delayed aircraft deliveries, which forced it to revise its earnings forecasts twice. The announcement was made at the start of Lufthansa’s Investor Day in Munich, signaling a renewed focus on efficiency and long term growth.