KLM, the Dutch arm of Air France-KLM has announced that it would be cutting around 5,000 full-time positions through the end 2021 due to coronavirus-led crisis of unprecedented magnitude.
According to reports, some 1,500 temporary contracts will not be renewed. In addition, other 2,000 jobs will go through a voluntary redundancy scheme. However, around 1,500 employees, including ground force, cabin and cockpit crew, and administrative workers will lose their jobs.
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) 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.
“A great deal has already been done in recent months with respect to adjusting the size of our company in the face of a new reality,” KLM CEO Pieter Elbers stated.
“Unfortunately, more measures are needed in the short term to guarantee KLM’s continued existence in the future.”
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