Lufthansa Cargo to shed 10% of jobs by 2023

Lufthansa Cargo Center (LCC) at Frankfurt Airport

Lufthansa Cargo will shed just over 10% of its workforce by 2023 as part of a restructuring at the overall airline group.

A spokesperson for the cargo division confirmed that around 500 of the cargo division’s workforce of 4,500 people would leave the company over the next two-and-a-half years.

Part of the rationale for the reduction is that the airline group has slashed its passenger operations in light of the coronavirus outbreak.

The airline has also announced plans to reduce its 700 plus fleet by 100 aircraft as part of the restructuring plan.

“Lufthansa Cargo will support the restructuring of Lufthansa Group and continue to optimise its cost position,” the spokesperson said.

“In particular as a result of the changes in the offering of belly cargo routes in the wake of the corona pandemic. Concrete measures are currently being elaborated. If any changes should arise for our customers as a result, we will of course inform them as early as possible.”

The cargo division also recently announced the outsourcing of part of its handling business to logistics company Fiege.

“The decision regarding parts of the handling in our Cargo Center in Frankfurt was taken at an earlier stage, irrespective of the current situation, and essentially re-organises our internal service provider structure,” the spokesperson added.

Lufthansa Cargo had also already reduced the size of the executive board by one position — from four to three — in April, when the former chief financial officer Martin Schmitt changed his role within Lufthansa Group.

Following the move, chairman of the executive board and chief executive of Lufthansa Cargo, Peter Gerber took over the finance and human resources department on an interim basis. Gerber also assumed the role of labour director.

In mid-June, the airline announced its ReNew restructuring progamme, which included plans to cut the equivalent of 22,000 full-time jobs, half of which will be in Germany, and reduce its fleet in response to the COVID-19 outbreak.

Later that month, Lufthansa shareholders approved a €9bn financial rescue from Germany’s economic stabilisation fund (WSF) at an extraordinary general meeting.

Under the financial plan, the WSF will make silent capital contributions of up to €5.7bn and take a 20% stake in the airline through a capital increase. The package will be supplemented by a state-guaranteed loan of up to €3bn with the participation of KfW and private banks.

Be the first to comment

Leave a Reply

Your email address will not be published.


*