KLM is preparing to shrink its workforce by almost 15% as part of a major restructuring aimed at cutting costs.
Despite improving profits, the Dutch airline says its future is far from guaranteed, with big changes needed to bring costs under control and restore competitiveness.
The Dutch flag carrier announced the measures on Thursday alongside parent company Air France-KLM's third-quarter earnings. Around 5,000 positions have already been or will be affected, with jobs eliminated, outsourced or transferred within the wider airline group.
The overhaul aims to deliver an additional €1 billion ($1.1 billion) in annual earnings improvements, bringing the total targeted improvement to €1.4 billion.
Speaking on Thursday, Marjan Rintel, KLM's CEO, delivered a stark message about the need for change: "KLM's future is not guaranteed… 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."
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Tags: air france-klm, airlines, earnings, jet stream, klm