KLM wants one in seven jobs to go so it can improve results by a billion euros a year
The Dutch airline points to expensive jet fuel, higher airport charges at Schiphol and international turmoil.
KLM is to cut around 5,000 jobs, almost 15 percent of its workforce, VRT NWS reports, citing the Dutch news agency ANP. Chief executive Marjan Rintel warned that the company's survival cannot be taken for granted. She points to international turmoil, high fuel prices and general pressure on aviation. According to chief financial officer Bas Brouns, results must improve structurally by 1 billion euros a year; earlier measures have already delivered around 750 million euros.
KLM says compulsory redundancies will probably not be needed. The company is counting on voluntary departure schemes, redeployment and not replacing staff who leave. KLM wants to agree with the unions on higher productivity by 2028 and moderate pay rises, NH Nieuws writes. Ground handling at subsidiary KLM Cityhopper and part of baggage handling at Schiphol will be outsourced, and more tasks will move to sister company Air France.
The fleet is also being overhauled. Instead of larger Airbus A320 aircraft, KLM is opting for smaller Embraer E195-E2s in Europe, and its Boeing 737s and Embraer 190s will be phased out over the coming years, VRT NWS reports. The Airbus aircraft already ordered will be used elsewhere in the Air France-KLM group. KLM wants to remain an independent brand with some 160 destinations from Schiphol. Operating profit improved in the third quarter, but the margin is still below target, according to NH Nieuws.