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Sept. 29 (UPI) — Germany-based Lufthansa said the airline will eliminate thousands of jobs in the next five years as it turns to artificial intelligence in a bid for higher profit.
Lufthansa Group said it will cut some 4,000 jobs globally by 2030 in largely administrative roles based in Germany as part of a wider company restructuring as the airline seeks greater use of AI to pick up human slack in a “digitalization, automation and process consolidation” process.
The company said it was reviewing corporate activities that will “no longer be necessary in the future,” citing “duplication of work” as an example.
“In particular, the profound changes brought about by digitalization and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes,” the company stated during its Capital Markets Day in Munich.
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The company’s goal is to expand its presence in other international hot spots, such as Portugal and Canada, over the next several years as part of its “turnaround” plan.
Lufthansa added it will “move even closer” to network airlines Swiss, Austrian and Brussels Airlines and ITA Airways as a result of “adjustments to the organizational structure and processes and even deeper integration.”
In addition, the German airline conglomerate said its anticipating more than 230 new aircraft by 2030. It added that included at least 100 long-haul aircraft.
Analysts noted Lufthansa’s long-term financial targets should be viewed “positively.”
According to Lufthansa officials, the company expects an adjusted free cash flow of more than $2.9 billion yearly.
On Monday, its stock shares bounced 0.9% in the morning hours and since the year’s start has gained 25% in value.
Lufthansa has faced staff strikes, increased competition and delay issues.
It arrived in the middle of a push by corporations in a global transition to AI-incorporated business activity and operations.
Salesforce CEO Marc Benioff revealed earlier this year that the company reduced its headcount from 9,000 to 5,000 because, according to Benioff, “I need less heads.”
In May 2023, the British telecommunications company BT announced plans to terminate around 40% of its workforce by 2030 with around 20% to be AI-replaced.
Meanwhile, a global leader on Internet safety noted early Monday morning how international groups, including the United Nations General Assembly, have been advancing topics on “how nations can build the capacity to participate in the AI economy.”
Joanna Shields, Britain’s minister of Internet Safety & Security under two conservative prime ministers, said on X that artificial intelligence must be “sovereign, responsible & inclusive” as greater use of AI is deployed.
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