Lufthansa Plans To Trim Workforce In Favor Of AI, Automation
Lufthansa hopes to cut 20% of current administrative jobs by 2028 as the carrier struggles to turn a profit amidst higher operating and labor costs. The German carrier is banking on using automation and artificial intelligence to fill in the gap.
Lufthansa Will Cut 20% Of Administrative Jobs, Blaming Higher Operating Costs
Lufthansa saw its operating profit drop by 9% in the last quarter and expects to only break even for the year as it struggles with:
higher costs
International competition
low yields (the average amount of revenue received per paying passenger flown one mile)
A German magazine reported that one way Lufthansa plans to address this is by eliminating one in five administrative positions at the airline, a move that would impact about 400 positions.
When asked Lufthansa clarified that it would not be making any particular worker redundant, but instead stop filling positions as current employees moved to other parts of the company, retired, or left.
“There is currently a hiring freeze in the administrative areas of Lufthansa Airlines. A reduction in the number of staff is to be achieved through age-related, natural fluctuation.”
Lufthansa would not be the only carrier to trim its workforce in favor of automation. German automaker Volkswagen recently announced it would close “at least” three manufacturing plants in Germany, citing higher costs and a move toward automation. The move would cut “tens of thousands” of jobs and also reduce staffing at its remaining facilities. If it happens, it would be the first time in Volkwasgen’s history that it shut down a German plant.
Omnionous warnings about AI taking over all of our jobs continue to strike me as far-fetched over the next decade or two, but there is no doubt that the future of AI and automation may render certain jobs and skillsets far less marketable in an environment of intense competition for a limited number of jobs.
Lufthana’s woes are not unique, but suggest a sad trajectory for the German airline and a broader economic trend we will see more of in the years to come at US carriers as well.
image: Lufthansa