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Lufthansa To Cut 1000 Admin Jobs, 20% Of Leadership Positions - Quick Facts

German airline Deutsche Lufthansa AG (DLAKF,DLAKY) said Tuesday that its executive board has approved a second set of measures as part of its overall restructuring program due to the coronavirus crisis.

Under the restructuring plan, the company will reduce the number of leadership positions throughout the Group by 20 percent and also reduce 1,000 administrative jobs.

Following the downsizing of the executive board, the executive board and management bodies of the Group's subsidiaries will also be reduced in size compared with 2019. In a first step, the number of board members was reduced by one position each at Lufthansa Cargo AG, LSG Group, and Lufthansa Aviation Training.

Further, Lufthansa said it will implement the already planned reduction of sub-fleets and the bundling of flight operations. This includes the long- and short-haul leisure business at the Frankfurt and Munich hubs.

In addition, the company will reduce government loans and equity participations as quickly as possible in order to avoid a further increase in interest charges.

The financial planning up to 2023 provides for the acceptance of a maximum of 80 new aircraft into the Lufthansa Group carriers' fleets. This will reduce the investment volume for new aircraft by half, according to the airline.

Lufthansa said that its comprehensive restructuring program entitled "ReNew" is scheduled to run until December 2023 and is headed by Dr. Detlef Kayser, Member of the Lufthansa Group Executive Board and responsible for Airline Resources & Operations Standards.

Under the first set of restricting measures launched in early April, Lufthansa decided to reduce its fleet by 100 aircraft and not to resume the flight operations of Germanwings.

Lufthansa noted that due to the long-term effects of the coronavirus pandemic on air travel, there is a calculated personnel surplus of at least 22,000 full-time positions in the companies of Lufthansa Group even in the period following the crisis.

However, in contrast to many of its competitors, Lufthansa will continue to avoid layoffs wherever possible.

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