KLM to cut 1,000 jobs
What's the story
Dutch airline KLM has announced plans to cut around 1,000 jobs in the coming years. The decision comes as a response to rising fuel prices and higher operating costs. The move is part of a restructuring program aimed at improving profitability and strengthening the company's financial position. KLM President and CEO Marjan Rintel said these were difficult decisions needed for competitiveness and future security.
Job impact
Restructuring program to impact 5,000 positions
The restructuring program will impact some 5,000 positions at KLM. The company plans to outsource or transfer activities within the Air France-KLM group in a bid to improve productivity.
Rintel stressed that while everyone works with dedication and pride, KLM's future isn't guaranteed without these changes.
The restructuring will see around 800 positions in Ground Services, where certain activities will be transferred to external service providers.
Job transfers
Transfer of positions to parent company Air France-KLM
As part of the restructuring, KLM will transfer some 2,000 positions to parent company Air France-KLM. This includes around 1,500 jobs at customer contact center Cygnific.
The airline hopes to avoid compulsory redundancies through natural attrition and voluntary arrangements.
The changes are part of a wider plan to reorganize about 5,000 positions rather than cut all jobs.
Financial goals
KLM aims for €1 billion increase in annual earnings
KLM hopes to increase its annual earnings by €1 billion, bringing its total targeted earnings improvement to €1.4 billion.
The extra financial strength will be used for investments in new aircraft, customer experience, and employees.
The airline has already saved over €750 million through measures like reducing office space, not filling vacant positions, cutting jobs, and outsourcing activities such as catering and maintenance.
Market challenges
Air France-KLM raises fuel cost forecast for 2026
The restructuring comes as Air France-KLM faces higher fuel expenses and pressure on passenger spending due to the rising cost of living.
The group has raised its estimated fuel bill for 2026 to $9.2 billion from an earlier forecast of $8.9 billion.
It has also cut its full-year capacity growth forecast to 2%, down from an earlier estimate of up to 3%.