Lufthansa Group to cut 4,000 jobs in profitability drive

(Sharecast News) - German aviation giant Lufthansa Group has announced plans to cut 4,000 admin jobs by 2030 as part of plans to "significantly increase profitability". The company, which runs a number of passenger airlines including its namesake Lufthansa Airlines along with other aviation services businesses, on Monday announced a new set of medium-term financial targets for 2028-2030, including a 8-10% adjusted EBIT margin, 15-20% adjusted return on capital employed and more than €2.5bn in adjusted free cash flow each year.

"Ultimately, all of the initiatives mentioned pursue a clear common goal: to position the company for the future and achieve sustainably attractive returns for shareholders," the Cologne-based firm said.

As part of its plans, Lufthansa will adapt its organisational and operational structure "to achieve closer and more networked cooperation between group functions and airlines in order to leverage synergies and increase efficiency".

This involves the reduction of around 4,000 jobs worldwide over the next five years through digitalisation, automation and process consolidation, the company said. The job cuts will be focused on administrative rather than operational roles, it added.

"Integrated cooperation within the Lufthansa Group will lead to significant changes in the processes and structures governing cooperation between Group companies in the future. On this basis, the Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example due to duplication of work," the company said.

Shares in flag carrier Deutsche Lufthansa were up 1.5% at €7.87 by 1008 in Frankfurt.