LSG Sky Chefs, catering service provider and subsidiary of Lufthansa, announced plans to cut 1,700 jobs by the end of 2021. A total of 2,400 jobs will be cut throughout Europe and sites will be reduced from 23 to 7 in total. Plans are in early conception stages, however, closures of the sites in Dresden and Bremen are fixed for 2016 and 2017. Moreover, the dish washing service of a kitchen in Frankfurt will be assigned to external actors. This is will result in the job reduction of 150 positions. Even though earnings situation improved, according to the company job cuts have become necessary as the company wants to become more competitive and profitable. LSG Sky Chefs is allegedly suffering from the high wage costs in Germany. Therefore, workplaces will be relocated to the Czech Republic. This threatens sites in Hanover, Leipzig, Berlin, Stuttgart and Hamburg.
LSG Sky Chefs, headquartered in Frankfurt, currently employs 5,500 employees in Germany and 33,500 worldwide.