KLM Royal Dutch Airlines has announced that it will be undertaking a major restructuring programme targeting the airline’s earnings. The programme seeks to modernise KLM’s fleet as well as expand its destination network. The announcement also confirmed that KLM would be reducing its workforce by 15%, which will translate to roughly 1000 jobs lost as part of the overhaul.
KLM Takes “Painful Measures” To Restructure Its Workforce
KLM Royal Dutch Airlines announced on Nov. 5 that it would undertake major work to restructure and overhaul its workforce and operations to strengthen productivity and lower costs.
As part of this restructuring, 5000 jobs across the airline’s operations network will be, or have been, reorganised. Over a thousand of these will be directly eliminated, reducing KLM’s workforce by around 15%.
The restructuring will see 800 positions within the airline’s Ground Service be transferred to external providers to be outsourced. An additional 2000 roles, 1500 of which are at the customer contact centre in Cygnific, will be transferred to Air France-KLM. The airline has stated it hopes to limit impact on employees through voluntary arrangements and transfers to other roles.
President and CEO of KLM Marjan Rintel explained the decision to reduce the airline’s workforce:
“It’s painful to transfer activities that have traditionally been part of our company. This affects colleagues who have devoted their entire working lives to KLM […] But doing nothing would ultimately have even more painful consequences, both for jobs and for our country’s connections to the rest of the world. That’s why we’re taking action to make KLM stronger and more competitive.”
He also stated that the airline would be explaining decisions and future changes to its employees, partners, and other stakeholders with “great care and respect”, with open dialogue in order to make the transition easier for those affected.
The airline has stated it hopes to achieve a structural productivity increase of at least 8% by 2028 as a result of these structural changes, as well as moderate wage growth.
KLM Invests In Modernised Fleet
KLM Royal Dutch Airlines, the flag carrier of the Netherlands, will undertake an overhaul of its operations in order to improve earnings. The airline has emphasised global instability, high fuel prices, and increasing pressures on the aviation industry as reasons for the necessity for these changes.
The airline stated that its annual earnings would need to improve by 1 billion euros to continually invest in customer experience, the airline’s fleet, and its staff. KLM had a net income of 416 million euros in 2025.
Bas Brouns, CFO of KLM, explained the challenges KLM was facing:
“We need to strengthen our financial foundation to make KLM more resilient in the face of uncertainty and better prepared for the future. We need a KLM that can invest in a new generation of aircraft, better customer service, and our people. […] We need to make a major leap forward. Improving our annual earnings by 1 billion euros is essential to delivering our strategy and focusing on what sets KLM apart.”
The Dutch airline has announced changes to the aircraft that will make up its fleet, shifting the balance of smaller and larger aircraft. The A321neo will remain a critical part of KLM, and the Embraer E195-E2 will fill the role of a smaller plane in the fleet. The Boeing737 and Embraer E190 will be phased out gradually over the next few years.
In addition to this, KLM says it will continue to modernise its onboard services. The airline will improve its Wi-Fi service, expand its onboard catering options, and improve the overall comfort of its flights.
KLM Royal Dutch Airlines has set out clear plans to significantly increase earnings to stay afloat in an increasingly difficult period for airlines. The streamlining and modernisation of its fleet will help manage costs, KLM says, while also acknowledging that job cuts are a “painful” but necessary measure to aid in these efforts.
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