German airline group Lufthansa has announced that it will cut 4,000 jobs by 2030, most of them in Germany, as the company looks to reduce costs and adapt to new technologies, reported news agency AFP.

The job cuts will mainly affect administrative roles rather than operational positions such as pilots, cabin crew or ground staff.

The company currently employs about 103,000 people worldwide. Its network includes Eurowings, Austrian Airlines, Swiss, Brussels Airlines and ITA Airways, which it recently acquired as Italy’s new flagship carrier.

JOB CUTS IN A WEAK ECONOMY

The announcement comes at a time when Germany is facing its second year of recession. Unemployment has risen to its highest level in ten years, while the country’s big companies are struggling to deal with rising energy costs, competition from China and slow progress in adopting new technologies.

Lufthansa is not the only German giant reducing staff. Just days earlier, Bosch, the industrial engineering and technology company, said it would cut 13,000 jobs worldwide, equal to 3% of its workforce.

DIGITALISATION AND ARTIFICIAL INTELLIGENCE

In its statement, Lufthansa said the decision was part of a broader review of its operations. “The Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example due to duplication of work,” the airline said.

It added that “the profound changes brought about by digitalisation and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes.” This means certain administrative tasks will no longer require the same level of human involvement.

Along with the restructuring, Lufthansa has set new financial targets for the years 2028 to 2030. The company aims to achieve an adjusted operating margin of 8% to 10% during this period.

The job cuts reflect the company’s effort to remain competitive in a fast-changing aviation industry, while also preparing for a difficult economic environment in Germany and Europe.

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