KLM plans 5,000 job cuts as it steps up cost reductions
The airline says voluntary departures and not replacing some employees will help reduce staff, while Air France-KLM reported higher third-quarter revenue.
Key takeaways
- KLM plans to cut 5,000 jobs, nearly 15% of its workforce.
- The airline expects voluntary departures and not replacing some staff to deliver the cuts.
- Air France-KLM reported third-quarter revenue of €9.916 billion, up 7.6% year over year.
KLM plans to cut 5,000 jobs, nearly 15% of its workforce, as it seeks to lower costs. The airline says it expects to make the reductions through voluntary departure arrangements and by not replacing some employees.
The company also plans to reorganize parts of its business, outsource some ground and baggage handling, and gradually stop maintaining aircraft that no longer fly for KLM. It wants flying staff to work more hours and says it will no longer proceed with a plan to buy new Airbus aircraft.
KLM says it needs €1 billion in structural savings to leave more money for investment in a new fleet. It cited high fuel prices and rising airport charges at Schiphol among the pressures on costs. CNV and FNV unions raised concerns about the impact on staff; De Unie welcomed the absence of forced layoffs.
Separately, Air France-KLM reported third-quarter revenue of €9.916 billion, up 7.6% from a year earlier, and adjusted operating income of €1.346 billion. Air France-KLM shares traded at €12.625 as of 08:30 UTC on Nov. 5, up 11.97% from the previous close.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
