Lufthansa Cargo (LH, Frankfurt International) will shed 500 jobs worldwide as parent firm Lufthansa (LH, Frankfurt International) slashes costs and resizes the business, The Loadstar reported.

Having secured financing from governments in Germany, Austria, and Switzerland, the group acknowledged this week that “the complete repayment of government loans and investments, including interest payments, will place an additional burden on the company in the coming years, making sustainable cost reductions inevitable.”

As the group downsizes its current fleet by around 100 aircraft and halves its planned investments in fleet renewal up to 2023, cargo volumes are likely to fall, and fewer employees will be required, a Lufthansa Cargo representative told the logistics news site.

“We expect some 500 jobs will be reduced [at Lufthansa Cargo] worldwide by 2023, in particular as a result of the changes in the offering of belly cargo routes in the wake of the corona pandemic. Concrete measures are currently being elaborated. If any changes should arise for our customers as a result, we will, of course, inform them as early as possible,” the representative explained.

Lufthansa Cargo, which currently operates an all-owned fleet of seven B777-Fs and six MD-11(F)s, has already made changes to its executive board. Chief financial officer Martin Schmitt moved to the passenger group in April, and chief executive Peter Gerber has taken on interim responsibility for finance and human resources.

Lufthansa Group employed 4,539 people in its logistics business globally in 2019, according to its most recent sustainability report.