"KLM's future is not guaranteed!": CEO sounds alarm amid sweeping cuts

Dutch airline KLM has announced a major restructuring affecting around 5.000 positions, alongside plans to change its European flight operations and ground services at Schiphol. The airline says the measures are necessary to cut costs and secure its long-term future.

KLM to restructure thousands of jobs

According to KLM's official announcement, approximately 5.000 positions, representing nearly 15 percent of its workforce, have already been or will be reorganised. "KLM's future is not guaranteed," CEO Marjan Rintel warned, citing high fuel prices, global instability and growing pressure on the aviation industry.

Earlier this year, catering work involving 1.250 positions was transferred to a partnership with gategroup. Another 800 positions in ground services are expected to be outsourced, while around 2.000 positions, including 1.500 at customer contact centre Cygnific, will move to Air France-KLM. A further 1.000 positions are expected to disappear through productivity improvements.

KLM expects to manage the changes through voluntary departures, natural staff turnover and redeployment, without compulsory redundancies.

However, trade unions have expressed concerns about job security and working conditions. "With the choices KLM is now making, employees are paying the price," CNV negotiator Souleiman Amallah said in a statement, calling for greater clarity about employees' futures.

Smaller aircraft and more self-service for KLM passengers

KLM also plans to change its European fleet, replacing its Airbus A320neo aircraft with smaller Embraer E195-E2 jets. The airline says this will help it better match passenger demand on European routes, while giving its regional subsidiary, KLM Cityhopper, a larger role. Its existing Boeing 737 and Embraer E190 aircraft will gradually be phased out, while the Airbus A321neo will remain.

Passengers can also expect more digital self-service options. KLM aims to introduce technology allowing travellers to manage more of their own check-in, boarding and flight rebooking, while airport staff focus more on providing personal assistance.

Behind the scenes, external companies will take over certain ground-handling operations for KLM Cityhopper and baggage handling in Schiphol's East Hall. KLM has not announced any specific route cancellations or changes to existing bookings as part of these proposals.

Why is KLM making these changes?

Despite announcing major restructuring plans, KLM reported an operating profit of 458 million euros in the third quarter of 2026, up 106 million euros compared to the same period last year. According to the airline's latest financial results, higher ticket revenue and cost savings contributed to the improvement.

However, KLM says its financial performance remains insufficient to support future investments. "These efforts have not resolved our underlying structural challenges," Rintel said, pointing to high fuel prices, operating costs and operational difficulties. KLM aims to improve its annual earnings by 1 billion euros and increase its profit margin to more than 8 percent, compared to 4,8 percent over the first nine months of 2026.

The airline also plans to increase productivity by at least 8 percent by 2028 and pursue more moderate wage growth. KLM has warned that further changes to staffing and employment conditions may be necessary if the restructuring does not deliver the intended improvements.