The number of management positions across Lufthansa Group would be reduced by 20 percent as part of a restructuring program scheduled to run until the end of 2023, Germany’s largest airline announced Tuesday.
Additionally, around 1,000 jobs would be cut in administration as the effects of the COVID-19 pandemic would make restructuring “inevitable,” Lufthansa noted.
Due to the long-term effects of the pandemic on air travel, Lufthansa assumed a personnel surplus of at least 22,000 full-time positions, even after the crisis.
Following shareholders’ approval of a 9-billion-euro (10.2-billion-U.S. dollar) governmental rescue package at the end of June, Lufthansa’s financing was “currently secure,” according to the airline.
However, the complete repayment of government loans and investments, including interest payments, would “place an additional burden on the company in the coming years, making sustainable cost reductions inevitable,” Lufthansa noted.
Lufthansa would “continue to avoid layoffs wherever possible” and was negotiating on crisis-related measures with unions and social partners representing Lufthansa employees. So far, negotiations had only been successful with the cabin union UFO.