In a move that signals a major shift for one of Europe’s aviation giants, Lufthansa Group announced plans to cut approximately 4,000 jobs by 2030, with the majority of reductions impacting administrative staff in Germany. The company’s decision, revealed during its Capital Markets Day in Munich on September 29, 2025, underscores how artificial intelligence and digitalization are rapidly transforming the global workforce—especially in industries traditionally reliant on large pools of support personnel.
"The profound changes brought about by digitalization and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes," Lufthansa said in a statement quoted by multiple outlets, including AFP and Skift. The airline group, which operates Lufthansa, Austrian Airlines, Swiss, Brussels Airlines, and ITA Airways, is reviewing which activities will no longer be necessary in the future, particularly those involving duplication of work across its network of carriers.
Lufthansa’s restructuring comes at a complex moment for both the company and the broader German economy. According to AFP, Germany is grappling with its second consecutive year of recession, and unemployment has reached its highest level in a decade. Rising energy costs, fierce competition from China, and slow progress in digital transformation have all contributed to a challenging business climate. The airline’s move, therefore, is not just about technological innovation—it is also a response to persistent economic headwinds and the need to remain competitive in a rapidly evolving market.
The company currently employs around 103,000 people worldwide, with about 101,709 on the payroll in 2024, and generated revenue of 37.6 billion euros ($44 billion) last year, according to the Associated Press. The planned job cuts will primarily affect administrative roles, sparing operational staff such as pilots and cabin crew. Lufthansa’s headquarters are in Cologne, with executive and operational offices in Frankfurt, the heart of Germany’s aviation sector.
Despite the looming layoffs, Lufthansa is far from shrinking away from its ambitions. The group is preparing for what it calls the largest fleet modernization in its history, planning to add more than 230 new aircraft by 2030, including 100 long-haul planes. This bold investment signals the airline’s confidence in the future of air travel, even as it leans on technology to streamline its operations.
"Integrated cooperation within the Lufthansa Group will lead to significant changes in the processes and structures governing cooperation between Group companies in the future," the company explained. The aim is to reduce costs and increase efficiency by consolidating back-office functions and leveraging AI for tasks that once required human oversight. This approach mirrors strategies employed by other major corporations. Klarna, the Swedish fintech firm, reduced its headcount by 40%—from 5,000 to around 3,000—thanks in part to AI, as CEO Sebastian Siemiatkowski has acknowledged. Salesforce, the American software giant, cut 4,000 customer support roles after implementing AI solutions, with CEO Marc Benioff stating, "I've reduced it from 9,000 heads to about 5,000, because I need less heads." Even consulting powerhouse Accenture is investing in upskilling workers for AI roles, while exiting those who cannot be retrained, according to CEO Julie Sweet.
Lufthansa’s financial outlook appears to be improving, at least in the eyes of investors. The company’s shares rose 0.9% following the job cut announcement and have climbed 25% since the start of 2025, as reported by CNBC and Business Insider. UBS analysts noted that Lufthansa’s new long-term financial targets—an adjusted operating margin of 8-10% by 2028 and adjusted free cash flow exceeding 2.5 billion euros (about $2.9 billion) annually—were better than the market had anticipated. These goals represent an increase from the previous margin target of 8%, reflecting management’s belief that technology-driven efficiency gains will bolster the bottom line.
However, these ambitions are set against a backdrop of recent turbulence. In 2024, Lufthansa faced a series of setbacks, including staff strikes, increased global price competition, and delays in aircraft deliveries. The company’s annual earnings before interest and taxes (EBIT) dropped 39% to 1.65 billion euros, and its operating margin fell to 4.4%, well below the strategic target of 8%. The stock ended that year down 23%. Yet the positive market reaction to the restructuring plan suggests renewed faith in Lufthansa’s ability to turn things around.
The airline industry as a whole is undergoing a technological renaissance, with artificial intelligence quickly becoming a key player in everything from customer service to maintenance scheduling. According to CNBC, airlines are discovering that AI can handle many traditional administrative tasks with greater speed and accuracy, allowing businesses to eliminate duplicate work and automate routine functions. For employees, this shift presents both challenges and opportunities: while some roles are disappearing, others are being created for those with skills in digital technologies and data analysis.
Other sectors are feeling the impact of AI-driven restructuring as well. Bosch, another German industrial heavyweight, recently announced it would cut 13,000 jobs worldwide—about 3% of its workforce—as part of its own digital transformation. The company has set new financial goals for 2028 to 2030, targeting an adjusted operating margin of 8% to 10%, a benchmark similar to Lufthansa’s own targets.
Across the Atlantic, the U.S.-based Spirit Airlines is also implementing cost-cutting measures, planning to furlough 1,800 flight attendants—about a third of its cabin crew—starting December 1, 2025, as it navigates its second bankruptcy in a year. The airline is hoping to achieve $100 million in cost reductions, with voluntary furloughs allowing some staff to retain medical benefits during their leave. The Association of Flight Attendants is working to help those affected find opportunities with other carriers.
For Lufthansa, the decision to cut jobs is not taken lightly, but executives argue it is necessary to secure the airline’s future. As the company pursues its ambitious fleet renewal and financial targets, it is betting that technological transformation will ultimately create a more sustainable and competitive organization. The message to employees is clear: adaptability and digital skills will be increasingly vital in the years ahead.
As the aviation industry continues to evolve, Lufthansa’s restructuring serves as a bellwether for the sector’s future—one where efficiency, innovation, and resilience are the watchwords, and where the embrace of artificial intelligence may be both a challenge and an opportunity for workers and companies alike.
