German aviation group Lufthansa is cutting 4,000 administrative jobs over the next five years as it seeks to raise profitability targets.
By 2030, Lufthansa, which operates the core Lufthansa German Airlines brand, along with other airlines like Swiss, Austrian Airlines and Brussels Airlines, plans to reduce 4,000 administration jobs through digitalization, automation and process consolidation, the company announced to analysts and investors during its Capital Markets Day in Munich.
The majority of affected roles will be based in Germany and will focus on administrative roles and not operational positions.
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The company stated in a note that it reaffirmed its goal of restructuring its organizational and operational framework to streamline cooperation and redefine internal responsibilities.
"The aim is to achieve closer and more networked cooperation between group functions and airlines in order to leverage synergies and increase efficiency," the company said in the note.
Lufthansa says it’s changing the way its different companies work together. Some jobs and tasks may no longer be needed, especially where work is being duplicated. The company also expects new technology – like digital tools and artificial intelligence – to make many parts of the business more efficient.
The job cuts are among several initiatives the company is implementing to "create sustainable value for customers, shareholders and employees.
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The note comes on the heels of Spirit Airlines furloughing nearly 1,800 flight attendants as it navigates its second bankruptcy in a year.
Davis told employees in a memo earlier this month that the carrier will reduce its capacity by 25% year over year in November to "optimize our network to focus on our strongest markets." He simultaneously warned that the company's cost-saving efforts would include more job cuts.
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Spirit Airlines announced in July it was furloughing 270 pilots on Nov. 1 and an additional 140 pilots will be demoted on Oct. 1.
