Lufthansa to Cut 4,000 Jobs Over Next 5 Years Amid Cost-Saving Plan

In an effort to decrease expenses and adjust to new technology, the German airline firm Lufthansa has stated that it will lay off 4,000 employees by 2030, the majority of whom will be in Germany, according to news agency AFP. Rather than operational professions like pilots, cabin crew, or ground staff, the majority of the job cuts will impact administrative roles.

Approximately 103,000 individuals are currently employed by the organisation worldwide. Eurowings, Austrian Airlines, Swiss, Brussels Airlines, and ITA Airways—which it recently purchased to become Italy’s new flagship carrier—are all part of its network.

Lufthansa Layoffs Align with Weakening German Economy

Germany is currently experiencing its second year of recession at the time of the announcement. While the nation’s large corporations are finding it difficult to cope with growing energy costs, competition from China, and sluggish adoption of new technologies, unemployment has reached its worst level in a decade.

There are other German behemoths cutting employees besides Lufthansa. The industrial engineering and technology giant Bosch announced a few days ago that it will eliminate 13,000 jobs globally, or 3% of its staff.

AI and Digitisation Core Reason for Lufthansa Layoffs

The decision was a part of a larger evaluation of Lufthansa’s operations, the airline stated in its statement. According to the airline, the Lufthansa Group is evaluating whether operations, such as those involving duplication of effort, will no longer be required in the future. It further stated that many areas and processes will become more efficient as a result of the significant changes brought about by digitalisation and the growing use of artificial intelligence.

 This implies that a certain amount of human interaction will no longer be necessary for some administrative duties. In addition to the reorganisation, Lufthansa has established new financial goals for 2028–2030. During this time, the corporation wants to reach an adjusted operating margin of 8% to 10%.

The company’s efforts to stay competitive in the rapidly evolving aviation sector and get ready for a challenging economic climate in Germany and Europe are reflected in the job losses.

Layoff has Become a Common Scenario in 2025

With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.

According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.