KLM plans to cut 5,000 jobs over the next two years

KLM plans to cut 5,000 jobs over the next two years, chief executive Marjan Rintel says, as the Dutch airline tries to improve its profitability and remain competitive.

The reductions include 2,000 jobs being transferred to parent company Air France-KLM. Outsourcing part of KLM’s ground-handling work will remove 800 jobs at the airline, while productivity gains are expected to account for 1,000 fewer positions. Jobs have also already been cut in catering, according to the report.

Rintel said the measures were needed to secure KLM’s future. She pointed to competition and the airline’s network of 160 direct destinations in the Netherlands, saying KLM wanted to prevent Dutch travellers from having to transfer elsewhere.

KLM says it needs an 8% profit margin. Chief financial officer Bas Brouns said the margin was just under 5% over the first nine months of this year. The airline has also set out further job cuts and outsourcing as part of its effort to improve profitability.