KLM takes action to strengthen its position
Keeping the Netherlands connected to the world in the years ahead
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Dear colleagues,
Today, we are announcing far-reaching measures to strengthen our position to keep the Netherlands connected to the world. The measures will affect every part and division of KLM and focus on what sets us apart: our global network of 160 nonstop destinations from Schiphol, our strong relationships with customers and our reliable operations. This will help us strengthen our position as an independent brand within the growing Air France-KLM Group and compete with Europe’s best-performing network airlines. Every day, we all work with incredible dedication, commitment, and pride. But KLM’s future is not guaranteed. The environment we operate in is becoming increasingly complex, and competition is fierce. That’s why, at this pivotal moment for KLM, we’re making clear choices and taking far-reaching, sometimes painful measures. We’re asking every colleague and every part of the KLM Group to contribute to our recovery. Whether you work in the cockpit, cabin, on the ground, in management or in an office. We need to work more simply, and productively to ensure our company’s survival. By doing so, we can build a clear path forward: a future where KLM is once again a great airline that connects customers to the world, a company people want to work for, and one the Netherlands can be proud of.
In this update, you can read more about the decisions made by KLM’s executive team and the measures that go with them.
What the future scenarios confirmed
Over the past few months, a group of colleagues, works council representatives, union representatives and external partners developed several future scenarios. These scenarios showed us why these measures are necessary, but above all that we need to take the initiative ourselves. Our conclusion as the Executive Board is that KLM must change. We can no longer afford to wait, or KLM will have increasingly less opportunities to shape its own future. Doing nothing would have far more painful consequences for KLM as a company, for jobs and for the Netherlands’ connectivity.
The KLM Board has made the following decisions
More information about the decisions and measures is provided below. Would you like to know what they mean for you? Starting today, divisions and departments will be discussing the impact on their specific areas. Please follow updates from your own division or department.
Focus on our customers, our network and reliable operations
We’ll continue to invest in our customer offering, our global network of 160 destinations from Schiphol and reliable operations supported by a modern fleet.
Making the European network more competitive
We’ll simplify our fleet for European destinations and make it more flexible and cost-effective. KLM Cityhopper will play a larger role.
A smaller, simpler and more agile organization
Some parts of our organization will be structured differently, for example through cooperation with external partners, restructuring and closer cooperation within Air France-KLM.
Collective labor agreements: more flexibility, higher productivity and lower costs
We want to work with the unions to reach new collective labor agreements that are more competitive and simpler. We’re aiming for a structural productivity increase of at least 8% by 2028, alongside very modest wage growth.
Impact on KLM employees
As a result of these proposed measures and decisions, the number of jobs at KLM is expected to decrease by nearly 15% over time. Approximately 5,000 positions have been or will be reorganized, with the work carried out differently. Since this spring, the work representing 1,250 jobs at KLM Catering Services has been carried out in partnership with gategroup. An estimated 800 Ground Services jobs will be outsourced to an external provider in the future. In addition, 2,000 positions (including 1,500 at the Cygnific Customer Contact Center) will be transferred to Air France-KLM. Finally, the required structural productivity improvement of at least 8% will result in a reduction of of approximately 1,000 positions at KLM.
KLM expects to limit the impact on employees as much as possible through natural attrition, voluntary measures, and redeployment.
“It’s painful to say goodbye to activities that have traditionally been part of our company. This affects colleagues who have devoted their entire working lives to KLM. I realize that many colleagues have already experienced significant changes in recent years. These decisions bring new uncertainty. That’s why we’re being open about what we’re doing, why we’re doing it, and what it means. We will carefully discuss these measures with employee representatives, unions, partners, and other stakeholders.”
More information
- Discussions and information sessions will begin in divisions and departments today.
- We have published answers to frequently asked questions about these measures on MyKLM. The FAQ will be updated regularly.
- You can expect regular progress updates through the KLM NewsApp and within your division.
- If you have other questions, please contact your manager or email us at toekomst@klm.com.
