New Delhi: Following the announcements of layoffs by IT giants TCS and Accenture the aviation industry has now faced a major setback. Germanys renowned airline group Lufthansa announced on Monday 29 September 2025 that it will lay off 4000 employees at the administrative level by 2030. This move taken in the name of promoting digitalisation and automation is worrying news for millions of employed people. Why are the layoffs happening? Lufthansa has faced persistent cost pressures and labour disputes over the past few years. Last year the company issued two profit warnings and had to abandon its 8% operating margin target. However Lufthansa has now prepared a roadmap to achieve that target stating that it will achieve an 8-10% operating margin by the end of 2030. The company says that digitalisation and automation will make operations easier and more cost-effective. Consequently non-operational staff will be cut by up to 20% with the majority of these employees affected in Germany. Investor confidence increased Despite the news of layoffs investor confidence in Lufthansa has increased. The companys shares rose by 2% in early trading on Monday 29 September 2025. Lufthansa says these steps will enable the company to generate 2.5 billion euros (approximately Rs. 25740 crores) of free cash flow annually. More than 230 new aircraft will be added Interestingly while Lufthansa is planning to cut jobs it has also announced the purchase of more than 230 new aircraft by 2030. This aims to increase the companys profits and network. Lufthansa believes that better returns can be achieved by consolidating subsidiaries and shifting resources from high-cost divisions. The company has clarified that both these layoffs and expansions are part of its turnaround programme which aims to reassure investors that Lufthansa is on a path to long-term stability and growth. HIGHLIGHTS After TCS and Accenture there is bad news for employees of this company. This company plans to sack 4000 employees. Germanys renowned airline announced that it will lay off 4000 employees at the administrative level by 2030. This move taken in the name of promoting digitalisation and automation is worrying news for millions of employed people. Lufthansa has faced persistent cost pressures and labour disputes over the past few years. Last year the company issued two profit warnings and had to abandon its 8% operating margin target. However Lufthansa has now prepared a roadmap to achieve that target stating that it will achieve an 8-10% operating margin by the end of 2030.