KLM to cut 5,000 jobs next year, 15% of its staff

KLM will cut about 5,000 jobs next year, around 15% of its workforce. The airline announced the plan on Thursday, when parent company Air France-KLM presented its third-quarter figures. The measures affect every part of the airline. KLM expects to absorb the impact through natural attrition, voluntary departure schemes and redeployment, and does not expect to need forced layoffs.

Why it matters

• Ground handling at KLM Cityhopper and baggage handling in the Oosthal at Schiphol move to outside firms, and some work moves to Air France.
• KLM drops its plan to fly new Airbus A320 aircraft and will use smaller Embraer E195-E2 jets instead; the Airbus aircraft ordered by Air France-KLM will be used elsewhere.
• KLM stays an independent brand within Air France-KLM, with a network of about 160 destinations.

Earlier savings already yielded €750m, but KLM wants to add €1bn a year on top. Parent Air France-KLM requires KLM to reach a profit margin of at least 8% of revenue by the end of next year; in the first half of this year it managed 1%. Operating profit improved in the third quarter but is still short of the target. KLM also cites sharply higher costs in the Netherlands, including higher airport charges at Schiphol.

KLM will discuss with the unions how the cuts fall at Schiphol and in Amstelveen, where its head office is. It also wants new cao (collective labour agreement) deals covering pilots, cabin crew, technicians, ground staff and office staff, with at least 8% more productivity in 2028 and very moderate wage growth.

It hurts to move activities that have traditionally been part of our company. This affects colleagues who have worked for KLM with heart and soul all their lives.Marjan Rintel, KLM chief executive, who called the intervention drastic but unavoidable