June 14, 2016: As part of its "Cargo Evolution" plan, Lufthansa Cargo has announced that it aims to reduce the number of full time employees by between 700-800 positions, a move that would contribute to cost savings of €80m each year as part of its C40 cost cutting programme that was announced last year.
The cost reductions will allow it to concentrate on new products and innovative solutions by having a more cost competitive structure, the airline said. Lufthansa Cargo said: "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.
"C40 will help us to achieve competitive unit costs. At the same time, we want to make it significantly easier to deal with Lufthansa Cargo by making processes more efficient at customer touch points. Lufthansa Cargo’s global network reach and capacity offer will not change as a result of C40." Lufthansa Cargo, which employs 4,600 people, said that that many of the job reductions will take place through early retirement. Up to 500 of the job cuts would be in Germany, it said. More details on the exact form the cost reduction measures will take will be available over the coming months, a spokesperson said.
Last year, the Lufthansa Logistics division, which is mainly Lufthansa Cargo but also includes ULD management firm Jettainer and Aerologic, posted earnings before interest and tax (ebit) of €3m, down from €123m in 2014.