Lufthansa to cut 4,000 jobs as airline turns to AI to boost efficiency

Core Insights - Lufthansa plans to cut 4,000 full-time equivalent roles globally by 2030 to enhance profitability and leverage AI for efficiency [1] - The restructuring will primarily target administrative roles, especially at its base in Germany [1] - The airline is responding to digitalization and AI advancements, which are expected to streamline operations [2] Restructuring and AI Integration - The Lufthansa Group is assessing which activities may become redundant due to work duplication and the impact of AI [2] - Other companies, such as Klarna and Salesforce, have also cited AI as a factor in workforce reductions, with Klarna reducing its headcount by 40% and Salesforce cutting 4,000 customer support roles [3] - Accenture is also planning to exit staff unable to be retrained for AI roles, indicating a broader trend in the industry [4] Financial Performance and Projections - Lufthansa expects its adjusted operating margin to reach 8-10% by 2028, an increase from the previous target of 8% [5] - The airline anticipates adjusted free cash flow exceeding 2.5 billion euros ($2.9 billion) annually [5] - Despite challenges in 2023, including strikes and competition, Lufthansa's annual EBIT dropped 39% to 1.65 billion euros ($1.8 billion), with an operating margin of 4.4% [6]