Lufthansa to cut 3,500 administration jobs
LUFTHANSA, Germany's biggest airline, has announced plans to slash 3,500 administrative jobs around the world as it tries to offset soaring fuel costs and fierce competition in Europe to return to profitability.
"We can only safeguard jobs for the long term and create new openings if we reorganise the administrative functions and accept job losses now," CEO Christoph Franz said.
Lufthansa, which has a workforce of about 117,000 people worldwide, fared better in the global economic crisis than peers such as Air France-KLM and British Airways.
However, Mr Franz said the airline needs to radically cut costs to remain competitive. The airline added that about 2,500 of the planned job losses will be in Germany.
He has vowed to improve results by €1.5bn by the end of 2014 as rocketing jet fuel prices, a weak global economy and competition for passengers with fast-growing low-cost carriers and Middle East airlines squeeze margins.