Amstelveen, Netherlands: KLM Royal Dutch Airlines will reduce its workforce by almost another 15% as part of a major restructuring programme involving outsourcing, organisational changes, increased automation and productivity improvements. The airline said approximately 5,000 positions have been or will be reorganised, with around 1,000 fewer positions expected through structural productivity improvements.
The restructuring will also involve transferring ground-handling activities to external providers and moving approximately 2,000 positions, including 1,500 at customer contact centre Cygnific, to Air France-KLM. KLM said it expects to limit the impact on employees through natural attrition, voluntary arrangements and transfers to other positions. The announcement was made on 5 November 2026 as the airline outlined measures to strengthen its financial position and improve competitiveness.
KLM President and CEO Marjan Rintel said: “KLM’s future is not guaranteed. The environment we operate in is becoming increasingly complex, with global instability, high fuel prices, and growing pressure on the aviation industry. That’s why, at this pivotal moment for KLM, we’re taking far-reaching, sometimes painful measures. Every department and every division will be asked to contribute.”
Under the restructuring programme, KLM has outlined several changes affecting its workforce and operational structure. The airline said the number of positions, which has already declined in recent years, will decrease by almost another 15%.
The approximately 5,000 positions being reorganised comprise different types of changes rather than 5,000 direct job cuts:
- 1,250 positions at KLM Catering Services: Since spring 2026, the associated work has been carried out in partnership with gategroup.
- 800 positions in Ground Services: The work will be transferred to external service providers.
- 2,000 positions: These will be transferred to Air France-KLM, including 1,500 positions at customer contact centre Cygnific.
- Approximately 1,000 positions: These will be eliminated through planned structural productivity improvements.
KLM said it aims to achieve a structural productivity increase of at least 8% by 2028, alongside very moderate wage growth. It also plans to work with trade unions to establish new collective labour agreements, arguing that its existing employment terms and conditions need to become simpler and more competitive.
Rintel acknowledged the impact of transferring activities traditionally performed within the airline, saying: “It’s painful to transfer activities that have traditionally been part of our company. This affects colleagues who have devoted their entire working lives to KLM and put their hearts and souls into their work.”
She added: “But doing nothing would ultimately have even more painful consequences, both for jobs and for our country’s connections to the rest of the world.”
The airline said it would maintain open dialogue with employee representatives, unions, partners and other stakeholders while implementing the changes.
Ground Services will undergo significant organisational changes over the coming years, with external partners taking over selected activities.
At Passenger Services, KLM plans to introduce greater digitalisation and new technology to give passengers more control over check-in, boarding and rebooking. Terminal employees will increasingly focus on hospitality and direct customer service.
Apron Services for European flights and Baggage Services will work with external partners. These providers will take over below-the-wing activities at KLM Cityhopper and baggage handling in Schiphol’s East Hall. KLM said specialist ground-handling providers would be able to invest more quickly and deliver services more efficiently at lower costs.
The airline will also improve its Hub Control Center at Amsterdam Schiphol Airport through new working methods, technology and closer cooperation with external partners. The changes are intended to make better use of the airport’s limited space and equipment while improving coordination of passenger and baggage flows.
KLM Cargo will consolidate all cargo handling in its own warehouse at Schiphol, covering freight transported on both passenger and dedicated cargo aircraft. The move is intended to prepare the business for a new cargo terminal scheduled for completion in 2035 and help attract additional transfer cargo through Schiphol.
The airline also plans to expand services for customers requiring additional support. It expects to handle increased cargo volumes without hiring additional employees by simplifying processes, increasing automation, improving working methods and deploying employees across different activities.
KLM is also restructuring its Engineering and Maintenance operations, with a greater focus on the aircraft fleet it intends to operate in the future. The airline plans to accelerate the phase-out of maintenance work on aircraft types being retired and schedule maintenance during existing ground time wherever possible to maximise aircraft availability.
The airline will introduce more efficient working methods in its engine and component shops to improve productivity and create opportunities for growth. It also intends to align the management of Engine Services and Component Services more closely with Air France-KLM.
As part of its European network strategy, KLM will change the balance between larger and smaller aircraft. The Airbus A321neo will remain in the fleet, while smaller Embraer E195-E2 aircraft will replace the previously planned Airbus A320s. KLM said the move would allow it to match capacity more closely with passenger demand across its European network and give KLM Cityhopper a greater role.
The Boeing 737 and Embraer E190 fleets will be phased out over the coming years. KLM expects fleet simplification to streamline its organisation and improve cost and operational management.
Available capacity will be directed towards routes that contribute most to passenger connectivity and the airline’s nonstop network from Schiphol. These measures are intended to restore profitability across its European network while supporting reliable operations.
The restructuring comes as KLM seeks to strengthen its financial position amid global instability, high fuel prices and increasing pressure across the aviation industry.
The airline said it has already achieved more than €750 million in structural financial improvements in recent years. It has also largely addressed shortages of pilots and maintenance personnel, while outsourcing activities such as catering and maintenance and significantly reducing the number of office buildings it operates.
However, KLM said these measures have not been sufficient to secure its long-term future. Scenarios developed by employees and external stakeholders over recent months reinforced the need for further action, with delays in taking decisions potentially limiting the airline’s strategic options.
KLM Chief Financial Officer Bas Brouns said: “We need to strengthen our financial foundation to make KLM more resilient in the face of uncertainty and better prepared for the future. We need a KLM that can invest in a new generation of aircraft, better customer service, and our people.”
He added: “These measures will help us increase revenue and further reduce our structural costs. We need to make a major leap forward. Improving our annual earnings by €1 billion is essential to delivering our strategy and focusing on what sets KLM apart.”
The airline’s targeted annual earnings improvement is €1 billion, bringing the total improvement target to €1.4 billion. KLM said the additional financial strength is needed to support investment in its fleet, passenger experience and employees.
Despite the restructuring, KLM said it would continue focusing on its core business, including its global network of 160 nonstop destinations from Amsterdam Schiphol, customer relationships and reliable operations.
The airline plans to operate a significantly simplified and modernised fleet of 185 Airbus, Boeing and Embraer aircraft. It will also continue investing in cleaner, quieter and more fuel-efficient aircraft, alongside ground initiatives aimed at reducing fuel consumption and emissions while improving working conditions.
Passenger-facing investments will include more comfortable aircraft, improvements to onboard services, free high-speed Wi-Fi on intercontinental flights and an expanded meal selection on European routes.
Digitalisation and artificial intelligence will also play a greater role in improving flight bookings and simplifying work across the airline, with KLM seeking to increase efficiency through technology.
The airline also highlighted the proposed expansion of the Air France-KLM Group to include Scandinavian airline SAS. The proposal remains under review by the European Commission, but KLM expects it to create additional opportunities for collaboration, synergies and economies of scale across the European airline group.
Rintel said the airline would closely monitor the implementation of the restructuring measures, adding that further changes to its organisation, employment conditions, productivity and staffing could still be necessary.
