LONDON – German flag carrier, Lufthansa (LH) has admitted on Wednesday that the jobs of 26,000 employees are surplus to their current requirements.
This statement suggests that many more jobs will be cut than originally expected a week ago.
Following a meeting with trade unions, a Lufthansa spokesperson stated the airline estimated that it has a surplus of 22,000 full time positions or 26,000 total positions.
In an attempt to repay the US$10.26bn (EUR9bn) state bailout and navigate the increasing financial loss as a result of Coronavirus, Lufthansa last week pledged a wide-ranging restructuring of the airline.
This includes thousands of job cuts and asset sales.
More Than Originally Expected
The airline stated that the number of job cuts would be “significantly more” than the initial 10,000 figure that was previous estimated.
The company is trying to reach agreements with labour unions that would allow for employees to work part-time as well as other ways to cut costs before a general meeting on 25 June where the shareholders will vote on the company’s bailout.
The union that represents cabin crew at the airline, UFO, demanded that Lufthansa commits to avoiding forced redundancies but also added that they are working hard to reach a deal by the time of the meeting.
The union representing Lufthansa’s pilots said that its members had offered to take a cut in pay up to 45%.
In return for the pay cut, the union wants the company to try to secure as many jobs as possible.