Lufthansa to cut 4,000 jobs as part of AI-driven restructuring strategy

Lufthansa announced its plans to eliminate 4,000 full-time equivalent (FTE) roles globally by 2030, as part of a broader restructuring effort aimed at boosting profitability and leveraging artificial intelligence to streamline operations.

The majority of the job cuts will affect administrative positions, particularly at Lufthansa’s headquarters in Germany. The airline group said the move is driven by ongoing digital transformation efforts, including the adoption of AI, which it expects to significantly improve efficiency across departments, Caliber.Az reports, citing foreign media.

“The Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example due to duplication of work. In particular, the profound changes brought about by digitalization and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes,” the company stated in a press release issued during its Capital Markets Day in Munich.

Lufthansa is the latest in a growing list of major companies citing AI as a catalyst for workforce reductions. Earlier this year, Klarna CEO Sebastian Siemiatkowski noted that AI contributed to a 40% reduction in headcount, dropping from 5,000 to around 3,000 employees. Similarly, Salesforce cut 4,000 customer support roles, with CEO Marc Benioff stating, “I’ve reduced it from 9,000 heads to about 5,000, because I need less heads.”

Accenture has also announced plans to phase out employees who cannot be reskilled for AI-driven roles. CEO Julie Sweet said, “We are investing in upskilling our reinventors, which is our primary strategy,” adding that the company is “exiting on a compression timeline” people for whom reskilling isn’t a “viable path.”

Despite the looming layoffs, Lufthansa shares rose 0.9% on September 29 and are up 25% year-to-date. The company now expects its adjusted operating margin to reach 8–10% by 2028, surpassing its earlier target of 8%, with free cash flow forecasted at over €2.5 billion annually.

UBS analysts described the new financial targets as “better than the market expected,” marking a potential turnaround after a difficult 2024, when Lufthansa’s EBIT fell 39% and its operating margin slumped to 4.4%.

By Vafa Guliyeva