KLM to cut 5,000 jobs, nearly 15% of staff, and swap planned Airbus A320s for Embraer jets

The cuts and how they will be made

KLM will cut about 5,000 jobs, which the company puts at nearly 15% of its workforce. The airline expects to absorb most of the personnel effects through natural attrition, voluntary exit schemes and redeployment of staff. Forced layoffs are probably not needed, according to the company, and staff who leave or stop working will not be replaced. Ground handling at its subsidiary KLM Cityhopper will be outsourced to another company, as will baggage work for KLM in the Oosthal at Schiphol airport. Digitalisation will also push passengers to handle more of their travel matters themselves, while some activities are moving to Air France.

Fleet and network changes

KLM is dropping its plan to operate Airbus A320 aircraft and will use smaller Embraer E195-E2 jets from the Brazilian manufacturer instead. The Airbus aircraft already ordered by Air France-KLM will be deployed elsewhere within the group. The airline still intends to operate as a separate brand, with a network of about 160 destinations from Schiphol. The money saved is meant to pay for investment in digitalisation, new aircraft and customer service.

Earlier measures, delivered750

New structural improvement sought1,000

Earlier measures, delivered

750 EUR million

New structural improvement sought

1000 EUR million

Data from the article text

Why KLM is cutting

KLM says costs in the Netherlands have risen sharply, partly because of higher port dues at Schiphol. Within Air France-KLM, the Dutch airline's profit has lagged behind for years. The board wants a structural improvement of 1 billion euros, on top of the 750 million euros that earlier measures delivered. Operational profit in the third quarter improved, but the margin still falls short of the target. KLM reached only 1% in the first half of this year, while the group requires at least 8% of revenue by the end of 2027. An earlier savings round in early 2025 removed 250 head office jobs, closed offices and largely sold off the catering arm.

Union talks and productivity

KLM will negotiate new, frugal collective agreements with unions representing pilots, cabin crew, technicians, ground staff and office workers. The company is seeking at least 8% productivity improvement in 2028, which it describes as harder and longer work, combined with a very moderate wage increase. The exact effects at Schiphol and Amstelveen, where the head office is located, are not yet known, and KLM will discuss them with the unions. The airline cut more than 5,500 jobs in the summer of 2020 and then had to refill many roles, especially among pilots and in the technical department.

The CEO's message

Marjan Rintel, KLM's president-director, wrote in a press release that the airline's survival is no longer a given. She framed the cuts as necessary at a turning point for the company.

“The circumstances in which we operate are only becoming more complex: unrest in the world, high fuel prices and pressure on aviation.”

According to Rintel, every part and every division of the company is now asked to contribute.