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KLM reorganisation and 5,000 job cuts

17 sources

KLM announced a reorganisation that will eliminate about 5,000 jobs, nearly 15% of its workforce, over the next two years. The airline said it expects to avoid compulsory redundancies through voluntary departure schemes, redeployment and not replacing departing staff. The measures include outsourcing ground-handling work for KLM Cityhopper and baggage work in Schiphol’s Oosthal, moving some activities to Air France, further digitisation, and seeking higher productivity and restrained wage growth in talks with unions. KLM also said it will not use Airbus A320 aircraft and that aircraft already ordered will be used elsewhere in the Air France-KLM group, while it opts for smaller Embraer aircraft. It aims to improve its results structurally by €1 billion; it said earlier measures had already delivered €750 million. The Finance Ministry, a major shareholder, said it is important that KLM strengthen its financial position. Union FNV said outsourcing ground handling could intensify unhealthy competition at Schiphol. KLM Flight Academy in Eelde said the reorganisation does not affect it.