EMCC European Monitoring Centre on Change

LSG Sky Chefs

Company/Organisation:
LSG Sky Chefs

Geographic Location

Country: Germany
Location of affected unit(s): Dresden, Bremen, Frankfurt, Hanover, Leipzig, Berlin, Stuttgart and Hamburg

Company

Sector: Manufacturing
Manufacture of food products, beverages and tobacco products
10.85 - Manufacture of prepared meals and dishes
Number Employed: 5500

Employment Effects

Announcement Date: 08-06-2016
Planned Job Reductions min: 1700
Planned Job Reductions max: 1700
Type of Restructuring: Internal restructuring
Employment Effect Start: 08-06-2016
Foreseen End Date: 31-12-2021

Additional Information

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.