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Lufthansa to Cut 4,000 Jobs Amid Digital Transformation and AI Integration

Lufthansa to Cut 4,000 Jobs Amid Digital Transformation and AI Integration
Lufthansa Group has unveiled a comprehensive plan to reduce its global workforce by 4,000 positions by 2030, a move integral to its broader digital transformation strategy. Central to this initiative is the integration of artificial intelligence across the company’s operations, aimed at enhancing efficiency and streamlining decision-making processes. The restructuring will consolidate the group’s five network airlines—Lufthansa, Swiss, Austrian, Brussels Airlines, and ITA Airways—under a more unified organizational framework.
Organizational Restructuring and Workforce Impact
The consolidation seeks to clarify responsibilities and foster closer collaboration among the group’s airlines, accelerating operational processes. Lufthansa anticipates that this restructuring will eliminate redundant roles, particularly within administrative functions, with the majority of job cuts expected in Germany. Importantly, the company has indicated that operational roles will largely remain unaffected by these changes. The transformation is driven by the rapid adoption of digital technologies and AI, which Lufthansa believes will fundamentally alter internal workflows. The company noted that it is reviewing activities that may become obsolete due to duplication or automation.
Fleet Expansion and Financial Ambitions
Alongside organizational changes, Lufthansa plans to expand its fleet significantly, aiming to introduce more than 230 new aircraft by 2030, including 100 long-haul jets. Although current delays in aircraft deliveries are affecting the pace of fleet growth, the company highlighted that these delays have had a positive effect on average yields and capacity utilization. Financially, Lufthansa has set ambitious medium-term targets, aiming for an adjusted EBIT margin of 8-10% and an adjusted free cash flow exceeding €2.5 billion annually from 2028 onwards. The group also targets an adjusted return on capital of 15-20% before tax and intends to maintain a conservative liquidity buffer of €8-10 billion. These objectives are designed to surpass previous performance benchmarks and ensure sustainable returns for shareholders.
Strategic Focus Beyond Network Airlines
In addition to its network carriers, Lufthansa will continue to develop its point-to-point services through the Eurowings leisure division, which is currently modernizing its fleet with Boeing 737 Max aircraft. The group will also maintain its focus on maintenance and freight operations through Lufthansa Technik and Lufthansa Cargo. These strategic priorities were outlined ahead of the company’s upcoming capital markets event on September 29, where Lufthansa emphasized that financial resilience and operational efficiency will remain central to its strategy as it adapts to industry shifts driven by digitalization and AI.

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