Lufthansa Airlines is planning to gradually cut down jobs in administration, media reports said. The German carrier is looking at reducing the workforce in administration by 20 per cent as the airline tries to manage amidst an expected decline in earnings, the Manager Magazin reported last week.

These layoffs are expected to have an impact on 400 positions in the airline, reported Reuters. The carrier didn’t comment directly on the job cut reports, however, it added that it was planning to reduce costs in administration department by 20 per cent by 2028. This move comes as the company focuses on more digital technologies such as artificial intelligence and automation.

A spokesperson for the carrier said, “There is currently a hiring freeze in the administrative areas of Lufthansa Airlines. A reduction in the number of staff is to be achieved through age-related, natural fluctuation.”

The report noted that an internal estimate warned of an operating loss of €800 million approximately in 2026 if the carrier remains on the current path going forward. However, there was no official comment from the spokesperson regarding this projection.

Notably, the carrier reported a 9 per cent decline in its operating profit in the third quarter as the flagship entity tries to cope with low yields, competition with global carriers, and increasing costs.

Notably, another German giant, Volkswagen, lately announced that it plans to shut down nearly three factories in the country. This decision is expected to impact thousands of workers and is part of a more detailed restructuring. Daniela Cavallo, head of Volkswagen's works council, informed the employees of the decision and said, "Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round. This is the plan of Germany's largest industrial group to start the sell-off in its home country of Germany."