Lufthansa, the German airline group, announced that it will cut 4,000 jobs by 2030, mostly in Germany, AFP reported. Most of the reductions will affect administrative staff. Currently, the company employs around 103,000 people worldwide. Its operations include Eurowings, Austrian Airlines, Swiss, Brussels Airlines, and ITA Airways, which it recently acquired as Italy’s new flagship airline.

Economic Pressures Influence Decision

The job cuts come as Germany faces its second consecutive year of recession. Unemployment has reached its highest level in a decade. Furthermore, companies are grappling with rising energy costs, competition from China, and slow digital transformation.

Just days before Lufthansa’s announcement, Bosch revealed plans to cut 13,000 jobs worldwide, equal to 3 per cent of its workforce. This highlights the wider trend of German companies reducing costs amid economic uncertainty.

Digitalisation and AI Drive Changes

Moreover, Lufthansa said in a statement, “The Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example due to duplication of work.”

It added, “The profound changes brought about by digitalisation and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes.”

Consequently, the company aims to streamline operations and adapt to new technologies. By doing so, it hopes to remain competitive in a challenging economic environment while improving efficiency.