Largest German airlines Lufthansa will reportedly cut 20% of its leadership positions and 1,000 administrative jobs in a restructuring plan that it announced recently to cope with fallout from the coronavirus crisis.
The company had earlier in June had said that it would cut about 22,000 jobs due to impact on business caused by the coronavirus pandemic. Lufthansa now joins its peer airlines in massive layoffs as the airlines industry struggles to cope with the dent on business made by the pandemic.
Lufthansa Group, which employs about 138,000 people, also said that it would halve its investments in new aircrafts. However, the company also said that it could still add up to 80 new aircrafts by 2023.
The company had earlier last month secured about $10.2bn in government bailout backed by shareholders. The bailout secured the future of the group after it was brought to the brink of collapse by the travel slump caused by the pandemic.
Lufthansa also said that it plans to reduce government loans and equity stakes as soon as possible in an attempt to avoid the increase in interest charges. The airlines added that 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 layoff plans, but had only been successful so far with the UFO union representing German cabin crew. It said it was still in talks with unions representing pilots and ground staff.
The company said it would speed up long standing plans to make its core Lufthansa airline a separate corporate entity, aiming to give the unit a clearer direction, a spokesman said.
Lufthansa decided in April to cut 100 aircraft from its fleet of about 760 and not to resume operations of its budget carrier Germanwings.
It said on Tuesday it had already phased out 22 aircraft, including six Airbus A380, 11 Airbus A320 and five Boeing 747-400.
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