KLM to cut nearly 15% of jobs in cost-saving drive
KLM plans to eliminate, outsource or transfer about 5,000 positions, close to 15% of its workforce, targeting an additional €1 billion in annual earnings.
KLM plans to eliminate, outsource or transfer about 5,000 positions, close to 15% of its workforce, according to Skift.
The company is targeting an additional €1 billion improvement in annual earnings as part of an effort to cut costs.
KLM recorded an operating profit of €458 million in Air France-KLM's third-quarter results.
The move combines job cuts with transferring other positions to external parties, within a broader plan to reduce expenses and improve the financial result, according to the source.
What do these terms mean?
Outsourcing: Transferring an activity or job to another company that performs it instead of doing it in-house.
Operating profit: The profit generated by a company's core business before deducting interest and taxes.
Earnings improvement: An increase in profit or a reduction in costs that raises a company's financial result.
Workforce: The total number of people employed by a company under permanent or temporary contracts.
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