Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
German airline Lufthansa is to restructure its cargo and catering divisions. Currently, the cargo division employs 4,600 staff, and the cuts of between 500 and 800 jobs are expected to save around EUR 80 million a year. Up to 500 jobs cuts have been confirmed for Germany, with the remainder as of yet unconfirmed but likely to take place worldwide. With regards to the catering division, three German facilities will definitely close, accounting for 140 jobs, and another 1700 could be lost in the second half of 2016. The move comes off the back of the International Air Transport Association lowering its growth forecast for air freight demand from 3% to 2.1% due to sluggish GDP growth, and costs driven down by Chinese company HNA group purchasing airline caterers. As well as the job losses, Lufthansa has grounded two of its cargo fleet. There will also likely be some job creation, as a testing facility is planned to open in the Czech Republic.
Eurofound (2016), Lufthansa, Internal restructuring in World, factsheet number 88002, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/88002.