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KLM restructuring and job cuts
◆14 sources
KLM announced plans to eliminate about 5,000 jobs, nearly 15% of its workforce, over the next two years as part of cost-cutting measures. It said it expects to achieve the reduction through voluntary departure schemes, redeployment and not replacing departing staff, and that compulsory redundancies will probably not be needed.
The airline plans to outsource some Schiphol work, including KLM Cityhopper ground handling and KLM baggage work in the Oosthal, shift certain activities to Air France, expand digitisation and forgo Airbus A320 aircraft in favour of smaller Embraer planes. KLM said the measures are intended to improve its result structurally by €1 billion; it said earlier measures had already delivered €750 million. The Finance Ministry, a major shareholder, said it is important for KLM to strengthen its financial position. Union FNV voiced concern that outsourcing ground handling could increase unhealthy competition at Schiphol.