UK Markets close in 6 hrs 32 mins

KLM chief says more job cuts expected if COVID crisis persists

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Lesquin
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

AMSTERDAM (Reuters) - KLM, the Dutch arm of airline group Air France-KLM <AIRF.PA>, will likely have to cut more jobs than the thousands of layoffs already announced due to the coronavirus pandemic, its chief executive Pieter Elbers said in a message to his staff.

Elbers warned that COVID-19 will limit flights more extensively than the 20-25% drop it had anticipated for next year.

"We now expect even lower production, which ultimately means we need fewer people", Elbers said in his message, seen by Reuters.

"Another 10% drop in production (so 30-35% down from 2019) would mean around another 1,500 jobs less."

KLM on Thursday submitted a restructuring plan to the Dutch state, a condition of the 3.4 billion euros (3.10 billion pounds) package in aid it is receiving to avoid bankruptcy amid the COVID-19 pandemic.

KLM said it would cut costs by 15%, as well as reduce carbon dioxide emissions by 50% by 2030. KLM is cutting its workforce by 20%, including 4,500 jobs this year.

(Reporting by Bart Meijer, editing by Louise Heavens)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting