Lufthansa to cut 1,000 jobs and 20% of leadership roles
The airline's shareholders backed a €9bn government bailout last month, bringing it back from the brink of collapse
Lufthansa announced another package of restructuring measures on Tuesday, including a 20 per cent cut in leadership positions and the reduction of 1,000 administrative jobs, as it battles with the fallout from the coronavirus pandemic.
The airline said it would also cut the investment planned for new aircraft in half, with its financial plan allowing for up to 80 new aircraft for the group's fleet up to 2023.
Lufthansa's shareholders backed a €9 billion ($10.1bn/Dh37.3bn) government bailout last month, securing the future of Germany's flagship airline after it was brought to the brink of collapse by the travel slump due to the pandemic.
The carrier already decided in early April to reduce its fleet by 100 aircraft and not to resume the operations of budget unit Germanwings.
It said on Tuesday it wants to reduce government loans and equity stakes as quickly as possible to avoid an increase in interest charges, noting that would put an additional burden on the company that added to the need for cost cuts.
Lufthansa, which employs around 138,000 people, reiterated that it has a personnel surplus of 22,000 full-time positions, but said it would try to avoid forced lay-offs if possible.
To that end, it is trying to reach agreement with trade unions, but has only been successful so far with the UFO union representing German cabin crew that is set to reap more than €500 million in savings.
Updated: July 7, 2020 05:34 PM