KLM to cut almost 15% of its positions as about 5,000 jobs go or move

KLM says its future is not guaranteed and that it is taking far-reaching, sometimes painful measures. The airline announced on 5 November that the number of positions at the company will fall by almost another 15%.

About 5,000 positions have been or will be reorganised, with the work done differently. That number is not one group of lost jobs. Some of the work moves to other companies, some moves within the group, and part of it disappears.

Where the 5,000 jobs go

About 2,000 positions move to the parent group Air France-KLM, including 1,500 at the customer contact centre Cygnific.

Since this spring, the work of 1,250 positions at KLM Catering Services has been done in partnership with the catering company gategroup.

An estimated 800 positions in Ground Services will go to outside firms. They will take over below-the-wing work for KLM Cityhopper and baggage handling in the East Hall at Schiphol.

Higher productivity should then mean about 1,000 fewer positions.

KLM says it expects to limit the impact on staff through natural attrition, voluntary arrangements and transfers to other jobs. CEO Marjan Rintel also said further changes to the organisation, employment conditions, productivity and staffing may still be needed.

Why KLM is doing this

KLM’s third-quarter results, published the same day, show an operating profit of €458 million, up €106 million on a year earlier. Over the first 9 months it made €526 million on revenue of €10.9 billion, which is just under 5%. Chief financial officer Bas Brouns says that margin must rise above 8%.

KLM points to global instability, high fuel prices and a cost base it says is too high. It wants to improve yearly earnings by €1 billion, which would bring the total improvement to €1.4 billion. It also wants productivity to rise by at least 8% by 2028, with what it calls very moderate wage growth.

What it means for passengers

KLM says it will keep investing in its network of 160 nonstop destinations from Schiphol. The Boeing 737 and Embraer E190 will be phased out over the coming years, and smaller Embraer E195-E2 aircraft will replace A320s it had planned. That gives KLM Cityhopper a bigger role. The statement names no specific routes.

What the unions say

Union CNV says employees are paying the price for KLM’s choices, and that KLM wants to do much more with far fewer people while cutting working conditions. CNV will consult its members before deciding on next steps. KLM says it wants to work with the unions on new collective labour agreements.