After announcing Q2 results, 1,100 KLM jobs will disappear from the company as part of a long term plan to cut 5000 jobs. Another 400 jobs will disappear from subsidiary companies and holding Air France-KLM.
KLM announced this morning that the company is in such financial troubles that it cannot avoid a series of mass layoffs. The layoffs are part of a larger plan in which a total of approximately 5,000 KLM jobs will disappear over the course of the coming year. The 1100 jobs that are now being consist of 500 ground crew, 300 cabin crew and 300 pilots. In addition, 400 jobs will be cut from subsidiaries and holding company Air France-KLM. Since it concerns full-time jobs, it is likely that over 1,500 employees are expected to be laid off, as many don’t have full-time contracts. Earlier this month, it was announced that 2,400 employees signed up for the company’s voluntary exit plan.
When looking at the second quarter financial results, mass layoffs cannot be avoided. In total, Air France-KLM recorded a loss of 2.6 billion euros. KLM alone lost EUR 493 million. KLM is explicitly keeping the possibility of more job cuts open. The current financial predictions model is based on the assumption of 20 percent less flights in 2021 and 2022. As such, if the number of flights is even lower, more job cuts might be needed to get KLM’s financially viable again.