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KLM unable to plug losses, cuts 5,000 jobs

KLM is planning to eliminate 5,000 jobs, or 15 percent of its workforce, as part of a major cost-cutting effort to achieve 1 billion euros in annual savings. The airline faces persistent financial challenges and is restructuring its European operations, including outsourcing ground handling and expanding its low-cost subsidiary, KLM Cityhopper.

Dutch airline KLM announced plans to cut 5,000 jobs, representing 15 percent of its total workforce, as it struggles with financial instability. The company aims to achieve an additional 1 billion euros in annual savings to meet profitability targets set by parent company Air France-KLM and to fund future investments. These measures will involve voluntary departures, natural attrition, and potential relocations of staff, with further details to be negotiated with labor unions. The airline is also seeking to improve productivity and implement more moderate wage growth.

To address ongoing financial difficulties, KLM is shifting its operational focus, particularly within its European network. The carrier will outsource ground handling services for European flights, reduce its maintenance operations for older aircraft, and expand the role of its subsidiary, KLM Cityhopper. Furthermore, the company has introduced paid catering on European flights and is leveraging digital tools and artificial intelligence to streamline customer service. These structural changes are intended to help the company secure its position as an independent brand while modernizing its fleet and services.

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Based on reporting by ad. Translated and condensed by LocalHeadlines.

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