- KLM will reduce its workforce by another 15pc affecting about 5,000 positions
- The restructuring aims to improve annual earnings by €1bn
- KLM will phase out its B737s and E190s over the coming years
- The airline will restructure its European network
- KLM aims to increase productivity by at least 8pc by 2028
KLM Royal Dutch Airlines will reduce its workforce by another 15pc affecting about 5,000 positions as part of a sweeping restructuring aimed at improving annual earnings by €1bn and restoring competitiveness. President and CEO Marjan Rintel reported the far-reaching measures are due to global instability, high fuel prices and mounting pressure on the aviation industry. The job reductions will be achieved through outsourcing, transfers within Air France-KLM, natural attrition and productivity improvements.
Of about 5,000 positions affected, 1,250 at KLM Catering Services have already been transferred to activities operated in partnership with gategroup. A further 800 positions in Ground Services will be transferred to external providers while 2,000 positions including 1,500 at customer contact centre Cygnific will move to Air France-KLM. The remaining reduction of about 1,000 positions will result from structural productivity improvements.
KLM will restructure its European network to restore profitability adjusting capacity to demand. The A321-200N will remain part of the fleet while smaller E195-E2 will replace the planned A320s. KLM will phase out its B737s and E190s over the coming years. The airline aims to increase productivity by at least 8pc by 2028. Rintel reported KLM had already achieved more than €750m in structural financial improvements in recent years but needed to go further.
Marjan Rintel shared “KLM is changing the balance between larger and smaller aircraft in its European fleet. The A321-200N will remain part of the fleet, while smaller E195-E2 will replace the planned A320s. By operating more smaller aircraft, KLM can better match capacity to the demand across its European network.”
