MIAMI – By the end of the year, Lufthansa (LH) will have shed 29,000 workers and slash another 10,000 jobs in 2021 in its home country as it struggles to cope with COVID-19, according to Sunday newspaper Bild am Sonntag.
Lufthansa and subsidiaries Eurowings, Swiss, Austrian, and Brussels Airlines, have cut their timetables, their fleets, and their employees, with air traffic not expected to return to pre-pandemic levels before 2025.
In addition, the newspaper, citing unidentified company sources, said that LH would cut 20,000 jobs outside Germany while also selling its LSG catering business, which employs 7,500 employees, taking the total workforce down to 109,000.
Moreover, in Germany, a further 10,000 jobs will be eliminated next year. The paper said LH had already burned through €3bn (US3.64bn) of the €9bn government bailout it received earlier in the year.
Lufthansa CEO: 27,000 Too Many Workers
As Chief Executive Carsten Spohr said last month, Lufthansa has 27,000 too many full-time equivalent workers, even as the airline promised unions not to make compulsory redundancies in exchange for cuts to bonuses and other payments.
According to the results of a ballot seen by Reuters on Friday, the agreement to cut costs and save jobs at LH gained the approval of a majority of the Verdi trade union members who work for the German airline as ground personnel. A formal announcement is scheduled for Monday.
According to the German newspaper, the contract with Verdi followed months of on-off negotiations during which, even after taking a loan to keep its aircraft operating, the union accused management of trying to cut jobs.
Featured image: Lufthansa Cargo Boeing 777F. Photo: Lufthansa