KLM announces massive layoffsChristian Fernsby ▼ | August 2, 2020
Pandemic-stricken Dutch airline KLM announced that it would cut 4,500 to 5,000 positions.
As part of the measures, a total of 4,500 to 5,000 positions in the entire KLM Group, part of Franco-Dutch airline Air France-KLM, will cease to exist.
This means that the workforce will be reduced to around 28,000 full-time equivalents (FTEs) in the course of 2021 from the current 33,000 FTEs.
At the end of June, the Dutch government presented an aid package of 3.4 billion euros (3.8 billion U.S. dollars) for KLM to overcome the consequences of the COVID-19 crisis. One of the conditions for the financial support was that KLM would take measures for a cost reduction.
Given the high level of uncertainty, KLM keeps open the possibility of further reductions in case the production levels will be revised further down for 2021/2022 than the -20% planned now.
In the forthcoming period, KLM will be cooperating closely with the trade unions to draft a social plan for each collective labour agreement domain and subsidiary, as well as maintaining close consultation with the Works Council about further defining the reorganisation.
This will include a more detailed specification of the conditions set by the Dutch government on issuing the financing package. Expectations are that this will be finished in its entirety in the course of October. ■