Dutch airline KLM to cut 5,000 jobs

Dutch airline KLM said Friday it would shed up to 5 , 000 jobs due to a “ crisis of unprecedented magnitude ” caused by the coronavirus pandemic .

The carrier , part of the Air France KLM group , said the cuts through the end of 2021 were necessary as it had made huge losses despite a 3 . 4 - billion - euro ( $ 4 . 0 -billion ) Dutch government bailout .

The cuts would involve around 1 , 500 compulsory layoffs from KLM ’ s current workforce of 33 , 000, the airline said .

There would also be 2 , 000 voluntary redundancies announced earlier this year , while further cuts would be made through non - renewal of 1 , 500 temporary contracts.

“ KLM is in the throes of a crisis of unprecedented magnitude … Expectations are that the road to recovery will be long and fraught with uncertainty, ” KLM said in a statement .

“ This means that KLM ’ s structure and size must be rigorously adjusted even further in the years ahead . Consequently , a total of 4 , 500 to 5 , 000 positions in the entire KLM Group will cease to exist . ”

The jobs lost would involve up to 300 flight crew , 300 cabin crew , 500 ground staff and around 400 jobs at KLM subsidiaries and in the Air France- KLM group positions.

KLM said it would “ keep open the possibility of further reductions ” due to the “ high level of uncertainty” in the airline business due to the pandemic , with demand not expected to recover until 2023 or 2024 .

“ It is incredibly difficult and sad for KLM to now have to bid farewell to valuable , committed colleagues , ” KLM CEO Pieter Elbers said in the statement .