newstodate.aero
APR 01, 2003 (newstodate): In response to the current world developments, KLM Royal Dutch Airlines will soon implement far-reaching measures to effect a direct improvement in results.
In a statement KLM says it will now identify initiatives for the whole of the KLM Group which could contribute to a structural ten percent reduction of unit costs. The first results of these steps will be demonstrated in the fiscal year, which begins today.
The company is initiating an employment stop and will reevaluate all planned investments. The measures will have an impact on our workforce. Based on an interim inventory of longer-term initiatives, KLM expects to cut several thousand jobs. A number of measures have therefore been implemented with immediate effect. One of these is a general recruitment stop. In addition, temporary employment contracts will not be extended and the hiring of external workers and advisors will be almost completely suspended. It is, however, inevitable that forced lay-offs will be required, says KLM.
In a statement KLM says it will now identify initiatives for the whole of the KLM Group which could contribute to a structural ten percent reduction of unit costs. The first results of these steps will be demonstrated in the fiscal year, which begins today.
The company is initiating an employment stop and will reevaluate all planned investments. The measures will have an impact on our workforce. Based on an interim inventory of longer-term initiatives, KLM expects to cut several thousand jobs. A number of measures have therefore been implemented with immediate effect. One of these is a general recruitment stop. In addition, temporary employment contracts will not be extended and the hiring of external workers and advisors will be almost completely suspended. It is, however, inevitable that forced lay-offs will be required, says KLM.