KLM announces 5,000 job cuts; 15% of its workforce disappearing

KLM is cutting 5,000 jobs, about 15 percent of its total workforce, the Dutch airline announced on Thursday. The airline expects to avoid forced layoffs through natural attrition, voluntary arrangements, and transfers to other positions.

“KLM’s future is not guaranteed,” KLM CEO Marjan Rintel said in a press release. “The environment we operate in is becoming increasingly complex, with global instability, high fuel prices, and growing pressure on the aviation industry. That’s why, at this pivotal moment for KLM, we’re taking far-reaching, sometimes painful measures. Every department and every division will be asked to contribute.”

The airline is reorganizing into a “smaller, simpler, and more agile” organization, aiming for a stronger financial foundation. Among other things, KLM will outsource activities like catering and maintenance and significantly reduce its number of office buildings.

“It’s painful to transfer activities that have traditionally been part of our company. This affects colleagues who have devoted their entire working lives to KLM and put their hearts and souls into their work,” Rintel said. “But doing nothing would ultimately have even more painful consequences, both for jobs and for our country's connections to the rest of the world.”

She stressed that the steps they are taking are done with a clear vision for the future. “One where KLM remains a great airline that connects customers to the world, a company people want to work for, and one the Netherlands can be proud of."

Within the Air France-KLM aviation group, the Dutch airline’s profits have lagged in recent years. To free up more capital for investments in a new fleet, customer service, and digitalization, KLM is aiming to structurally improve the company’s financial performance by €1 billion. Previous measures have already yielded an improvement of €750 million.