Tuesday 14 July 2020

Dutch flag carrier KLM to cut management by 25%, boost efficiency

KLM flightDutch airline KLM is poised to cut a quarter of its managerial jobs and support functions, broadcaster Nos says, after acquiring a copy of the reorganisation plan.

The document states that KLM is too complex, too slow and too expensive. The company is too hierarchical, has too many managers and ‘has lost sight of its customers’. Slashing costs will involve ‘flipping all the switches’, Nos says.

According to KLM, this means 25% of managers will lose their jobs and those who remain will have bigger departments to deal with. In addition, support, HR and communications departments, can be streamlined and made more efficient.

The job cuts should lead to savings of €40m a year, Nos says.

The plan was sent to the airline’s works council on July 8 and it has reacted positively, Nos says.

The reorganisation has been on the cards for some time. A spokesman told the broadcaster that the changes would make KLM more future-proof but declined to say how many jobs will actually be lost.

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