KLM TO RESTRUCTURE, CUT 2,700 JOBS
KLM Royal Dutch Airlines will launch a restructuring plan this year to cut capacity and reduce its work force by 2,700 jobs to combat poor financial results in its fiscal year ending March 31.
KLM said rising fuel costs, a decline in yield from overcapacity and rising unit costs are forcing the carrier to freeze capacity growth this summer and to reduce its fleet by seven aircraft in the coming fiscal year. KLM will halt service on several routes, and plans to reduce capacity by a further 5 percent in this year’s winter schedule.
To reduce unit costs, the airline said it will cut 2,700 jobs by canceling outside contracts and through natural attrition, as much as possible. KLM said it also will freeze technology budgets, except for electronic commerce projects.