Lufthansa Set To Cut 4,000 Jobs By 2030 As AI And Automation Take Over

In an attempt to boost profitability and operational efficiency, Lufthansa is set to cut 4,000 jobs by 2030, the company confirmed on Monday.

The job cut is part of a major restructuring as the German airline company looks to fast-track the adoption of artificial intelligence and automation.

The job reductions will likely take place across Germany, with administrative roles mainly under the scanner.

This is the region where Lufthansa has struggled to cut costs the most, with the move expected to generate about 30 million euros annually, the company predicted.

The reductions will occur through higher digitisation, automation and product consolidation.

In the past, Lufthansa, which is Europe's biggest airline, has struggled with rising costs and operational inefficiency. The company has particularly failed to react to worker strikers, while slow aircraft deliveries and an underperforming mainline airline business have weighed on results.

Last year, the group was forced to lower its guidance twice while ongoing delays in aircraft have been a particular blemish for the company.

Bloomberg reports that the rollout of the new Allegris premium cabin is facing hurdles. In addition, certification for its business-class seats on the Boeing 787-9 is still pending, which has forced the carrier to keep the seats blocked off from passengers until approval. 

This is coupled with growing concerns over rising costs and the balance sheet.

“We definitely lagged behind some of our competitors when it comes to financial performance, and also, until this summer, we lagged behind on operational performance,” Chief Executive Officer Carsten Spohr said during Monday’s event.

Following the job cut announcement, Lufthansa faces the renewed threat of labour strikes, with the labour union ver.di confirming that it won't accept the job cuts, which will likely affect ground employees.