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German airline giant Lufthansa Group is set to axe 4,000 staff by 2030 to make way for artificial intelligence to take over roles.
The company announced that as part of a shift to boost efficiency, it is currently “reviewing which activities will be no longer necessary in the future, for instance due to duplication of work”.
The cuts will impact Lufthansa Group and other airlines within its network, including Austrian Airlines, Brussels Airlines, ITA Airways and SWISS.
In a statement, the company said that increased efficiency across business and other areas would be created by “profound changes brought about by digitalisation and artificial intelligence”.
It is understood that administrative roles based in Germany will be the most impacted by the cuts, according to the Associated Press. The company is expecting to generate roughly €300 million in savings every year.
The push for AI comes as Lufthansa already teased staff cuts back in November 2024, when it said it would be reducing its administrative workforce by 20 per cent, roughly 400 positions.
In fact, the company is looking to drastically cut costs after missing profit targets in 2021 thanks to staff strikes and slow aircraft deliveries.
The company is also expecting to expand its fleet by the largest margin it has ever had, with over 230 new aircraft by 2030.
The Commonwealth Bank of Australia (CBA) recently rolled back AI-related job cuts after facing major union and staff backlash.
In July, the bank announced that it would be culling at least 45 customer service workers and replacing them with AI support chatbots.
“Our investment in technology, including AI, is making it easier and faster for customers to get help, especially in our call centres,” a CBA spokesman said regarding the voice bot.
“By automating simple queries, our teams can focus on more complex customer queries that need empathy and experience.
“To meet the changing needs of our customers ... we review the skills we need and how we’re organised to deliver the best customer experiences and outcomes. That means some roles and work can change.”
The move was immediately slammed by the Finance Sector Union (FSU).
“Just when we think CBA can’t sink any lower, they start cutting jobs because of AI on top of sneakily offshoring work to India,” said FSU national secretary Julia Angrisano.
“If this is what [CBA CEO] Matt Comyn calls productivity, we’re seriously concerned about his place at the national productivity roundtable.”
However, it turns out CBA’s claims of the AI lowering call volumes were false, with FSU members reporting that volumes were increasing, leading to CBA management asking team leaders to pick up the phones and the company offering overtime.
Following major pressure from FSU members and a Fair Work Commission dispute, the CBA decided to roll back the mass termination. Staff were offered their jobs back or the option to take a voluntary exit payment.
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