2025-09-29T12:58:49Z

---

In a shocking move, Lufthansa has announced plans to shed 4,000 jobs by 2030 as the airline aims to boost profitability and harness the power of artificial intelligence for greater efficiency. This decision sends ripples through the aviation industry, raising questions about the future of work in a rapidly digitizing world.

The airline revealed that it will primarily target administrative roles, with most cuts taking place in Germany, its home base. This restructuring is part of Lufthansa's broader strategy to streamline operations in the face of changing market dynamics. According to the company, "The Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example due to duplication of work." The integration of AI and digitalization is expected to enhance efficiency across various processes, making some roles obsolete.

This trend isn’t exclusive to Lufthansa. Other companies have also turned to AI to reshape their workforce. Klarna, for instance, cut its headcount by 40%, reducing from 5,000 to 3,000 employees, with AI playing a pivotal role in that decision. Similarly, Salesforce CEO Marc Benioff announced a workforce reduction from 9,000 to about 5,000, emphasizing the need for fewer staff in an AI-driven future.

Accenture has also taken a hard stance, with CEO Julie Sweet stating that the company will exit staff who cannot be retrained for AI roles. "We are investing in upskilling our reinventors, which is our primary strategy," Sweet mentioned in a recent call, highlighting a commitment to evolve with the demands of technology.

Despite the job cuts, Lufthansa's stock has shown some resilience, rising by 0.9% as of 1:50 p.m. or 8:50 a.m. ET. The company has seen a significant 25% increase in its stock value since the beginning of the year. Moreover, Lufthansa anticipates an adjusted operating margin of 8% to 10% by 2028, an improvement from its previous target of 8%. Analysts at UBS have viewed these new long-term targets positively, as they exceed market expectations.

However, last year was particularly challenging for Lufthansa, with missed profitability targets due to staff strikes, fierce global price competition, and aircraft delays. The airline's annual earnings before interest and taxes plummeted by 39% to 1.65 billion euros, and its operating margin fell to 4.4%, significantly below the strategic target of 8%. The stock ended the year down 23%, leaving many to wonder if the leaner workforce can indeed turn the tide.