Germany-based airline group Lufthansa is preparing to announce thousands of layoffs on Monday as part of its plans to boost efficiency.
According to the company’s plan, management staff will be reduced by around 20% over the coming years. This scope will include not only the main airline but also all of the group’s subsidiaries.
Lufthansa CEO Carsten Spohr stressed that current management expenses are unsustainable and emphasized the need to accelerate the transformation process in order to preserve financial margins.
While the exact number of layoffs has not yet been finalized, Lufthansa has previously made downsizing decisions affecting certain employee groups. Following the news breaking in the press, Lufthansa’s shares rose by 3.4%, reaching their highest level in three weeks.
The company aims to raise its operating profit margin to 8% by 2025. However, the slow progress in cutting costs continues to draw criticism from investors.
