Lufthansa Announces 1,000 Job Cut In Administration

German flag carrier Lufthansa has on Tuesday announced that it will cut 20% of its leadership positions and 1,000 administrative jobs, in a restructuring plan to cope with the economic fallout of the coronavirus crisis.
However, having downsized the executive board of the Lufthansa parent company, the corporation now plans similar actions at its subsidiaries, with Lufthansa Cargo AG, LSG Group, and Lufthansa Aviation Training to lose one board position each.

Lufthansa said its finances were now secure, after shareholders approved a multibillion-euro bailout from the German Government and commitments  made by the governments of Austria and Switzerland.

“The complete repayment of government loans and investments, including interest payments, will place an additional burden on the company in the coming years, making sustainable cost reductions inevitable for this reason as well,”it said.

According to the company’s calculations, the catastrophic impact of the coronavirus pandemic on air travel has resulted in 22,000 full-time positions becoming surplus across the Lufthansa Group, which has around 138,000 employees.

The company has in April announced it would cut its fleet by 100 planes over the medium term and to shut down its German wings budget subsidiary completely.

Share this: