Lufthansa to Cut 4,000 Jobs, Targets 10% Operating Margin by 2030

Lufthansa Group announced Monday plans to cut 4,000 administrative jobs by 2030 as part of a broader effort to improve efficiency and boost profitability. The airline also revised its mid-term targets, aiming for an adjusted operating margin of 8-10% from 2028 and adjusted free cash flow exceeding €2.5 billion (US$2.9 billion) annually.

The announcement was made during Lufthansa’s first company-wide capital markets day in six years, a forum designed to reassure investors about progress in its group-wide turnaround program. “We definitely lag behind some of our competitors when it comes to financial performance,” said Carsten Spohr, CEO, Lufthansa.

Rising costs and labor pressures have challenged the airline in recent years, prompting two profit warnings last year and delays to its previous 8% operating margin target. The updated goals now extend further into the decade, reflecting a focus on digitalization, automation, and structural cost management.

The workforce reductions will primarily occur in Germany and be coordinated with social partners. CFO Till Streichert noted that Lufthansa plans to hire roughly 1,500 administrative employees in international locations to offset some cost savings.

The cuts follow reports that about 20% of non-operational staff could be affected. Lufthansa may also relocate roles to lower-cost subsidiaries such as City Airlines and Discover, citing easier cost management at international bases, including Rome, where Lufthansa holds a minority stake in ITA Airways.

Labor unions have criticized the move. Verdi, representing ground staff, argued that “stricter European environmental taxes and politicians’ decisions to maintain higher taxes are piling on pressure to cut costs.” Meanwhile, the pilots’ union is concluding a vote on potential strike action over pension changes, with results expected shortly.