German-based Lufthansa Cargo is planning to cut around 700-800 employees in order to reduce its costs and be able to compete more efficiently with cargo carriers from the Middle East.
Currently, Lufthansa Cargo employs around 4,600 workers around the world. It’s representative stated that the company plans to cut 450-500 jobs in Germany, mainly through retirement, while another 250-300 positions will be reduced in foreign countries in the coming years.
The company spokesperson stated: “These job cuts will be as socially acceptable as possible. Working with our co-determination partners, we will prepare the implementation of these cost measures over the coming months and provide our company with a new, leaner organisational structure which is based on our customers’ needs.”
The announcement comes after the Lufthansa Cargo reported a loss of €19 million in the first quarter of 2016. By reducing is workforce, the company expects to cut its costs by €80 million.