Dutch airline KLM on Thursday introduced a sweeping package deal of “firm” cost-cutting measures it hopes will result in a lift in working income of round 450 million euros ($496 million) “in the short term.”
There was no particular point out of job cuts, however the firm vowed to “explore options for outsourcing, divesting or discontinuing activities that do not directly contribute to flight operations.”
KLM stated it might rethink and postpone all new funding, together with its new headquarters and engineering buildings.
Labour productiveness must be boosted by a minimum of 5 p.c by subsequent 12 months, by way of automation, mechanisation and lowering absenteeism, in keeping with the agency.
“We will do everything we can to maintain our network and services for our customers and protect jobs throughout our company,” stated airline CEO Marjan Rintel in an announcement.
“This is painful for every KLM colleague, but it is necessary, and it has to be done now,” added Rintel.
In line with its final set of outcomes, mixed with associate airline Air France, the group’s second-quarter revenue stood at 165 million euros — properly under forecasts.
A drop in passenger visitors because of the Paris Olympics hammered ticket gross sales, as vacationers prevented the French capital throughout the Video games.
