Business

Lufthansa to Cut Leadership Positions, 1,000 Admin Jobs

BERLIN—Germanys Lufthansa airlines will cut 20 percent of its leadership positions and 1,000 administrative jobs in a restructuring plan that it announced on Tuesday to cope with fallout from the coronavirus crisis.

Lufthansa Group, which employs about 138,000 people, said it would also halve its investment in new aircraft, although it said that meant it could still add up to 80 new planes by 2023.

Shareholders backed a 9 billion euro ($10.2 billion) government bailout last month, securing the future of Germanys flagship carrier after it was brought to the brink of collapse by the travel slump caused by the pandemic.

Lufthansa's flags flutter in front of a temporary closed First Class Terminal at Frankfurt Airport, Germany June 25, 2020.
Lufthansas flags flutter in front of a temporary closed First Class Terminal at Frankfurt Airport, in Germany, on June 25, 2020. (Kai Pfaffenbach/Reuters)

Lufthansa said on Tuesday it wanted to reduce government loans and equity stakes as soon as possible to avoid an increase in interest charges, adding that higher rates would increase the financial burden on the company and demand more cost cuts.

The airline said it had staff in 22,000 full-time positions it no longer needed but would try to avoid forced layoffs.

Lufthansa said it was trying to reach agreement with trade unions on layofRead More – Source