Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Lufthansa says up to 26,000 employees at risk of losing jobs

Published 06/10/2020, 04:34 PM
Updated 06/10/2020, 08:35 PM
© Reuters. Airplanes of German carrier Lufthansa are parked at the Berlin Schoenefeld airport

BERLIN (Reuters) - Lufthansa (DE:LHAG) admitted on Wednesday that the positions of up to 26,000 employees are surplus to requirements, suggesting many more jobs will be cut at the German carrier than a figure of more than 10,000 flagged a few weeks ago.

Speaking after a meeting with trade unions, a Lufthansa spokeswoman said the airline estimates that it has a surplus of 22,000 full-time equivalent positions or 26,000 employees.

Lufthansa last week pledged a wide-ranging restructuring, from thousands of job cuts to asset sales, as it seeks to repay a 9 billion euro ($10.26 billion) state bailout and navigate deepening losses in the face of the coronavirus pandemic.

It said then that job cuts would be "significantly more" than the 10,000 figure it had previously estimated.

The company is trying to reach agreement with labour unions to make employees work part-time and other ways to cut personnel costs before it holds an extraordinary general meeting on June 25, when shareholders will vote on the bailout.

Flight attendants union UFO demanded that Lufthansa commits to avoiding forced redundancies, but said it was working hard to reach a deal by the time of the meeting.

Meanwhile, the union representing pilots said its members had offered to take a cut in pay of up to 45%, in total amounting to about 350 million euros, but in return it wants the company to try to secure as many jobs as possible.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.