Lufthansa To Reportedly Announce Major Job Cuts As Turnaround Pressure Mounts

(RTTNews) - Deutsche Lufthansa AG (DLAKY), Friday announced that it is getting ready for thousands of layoffs at its Capital Markets Day in Munich, according to several media reports. o Following two profit warnings in 2024 and criticism for its delayed profitability targets, the move is intended to reassure investors of its commitment to cost-cutting. After the planned cuts were announced, shares increased 3.4 percent.

Although the precise number of layoffs has not been determined, the airline plans to cut administrative staff by approximately twenty percent.

It is anticipated that cuts will impact not only the core airline but the entire group. Pension disputes and the possibility of pilot strikes are contributing factors to the ongoing labor tensions.

DLAKY is currently trading at $9.03, up $0.16 or 1.80 percent on the OTC Markets.