Dutch airline KLM scraps 250 jobs in cost-cutting drive

The 250 jobs would come from "non-operational" roles, said KLM chief executive Marjan Rintel in a statement.
Representative Image. (Photo | AFP)
Representative Image. (Photo | AFP)(File Photo | AFP)
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The Hague: Dutch airline KLM said Wednesday it was shelving 250 jobs as part of cost-cutting efforts it hopes will lead to a boost in operating profit of around 450 million euros ($469 million).

The firm said it would try to avoid forced lay-offs to achieve the cuts, but admitted it could not rule that out.

The 250 jobs would come from "non-operational" roles, said KLM chief executive Marjan Rintel in a statement.

"It is crucial for our future to structurally lower costs, which involves making painful choices," said Rintel.

Other cost-cutting measures already announced by KLM include postponing the construction of a new HQ, as well as other maintenance buildings.

The firm is also seeking to shelve non-core activities and bolster productivity by at least five percent, via automation, mechanisation and reducing absenteeism.

KLM, allied with Air France, together posted a sharp drop in net profit for the third quarter of last year.

The Franco-Dutch group reported a profit after tax of 824 million euros, down 13 percent from the same three-month period last year.

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