KLM restructuring is now well underway, with the Dutch carrier announcing plans to reorganise around 5,000 positions and consolidate all cargo handling at Amsterdam Schiphol into a single warehouse, as part of a broad programme to overhaul its cost base and financial performance.
The scale of the changes reflects pressure that has been building across KLM's operations. Chief Financial Officer Bas Brouns has stated: "We need to strengthen our financial foundation to make KLM more resilient in the face of uncertainty and better prepared for the future. We need a KLM that can invest in a new generation of aircraft, better customer service, and our people."
What the KLM Restructuring Involves
Of the approximately 5,000 positions being reorganised, outsourcing, internal transfers and restructuring will account for the bulk of the changes, according to both Air Cargo News and The Loadstar. Productivity improvements are expected to account for a further reduction of roughly 1,000 roles, with KLM stating that it aims to minimise the effect on staff by relying on natural attrition, voluntary departures and moves to other positions within the company.
Air Cargo News reports that around 800 ground services roles will move to external partners, while a new partnership with Gategroup affects approximately 1,250 roles at KLM's catering unit. Streamlined workflows, increased automation and the flexible deployment of staff across a range of tasks are all expected to contribute to efficiency gains, the two outlets report.
KLM has also outlined plans to broaden its offering for passengers who need extra assistance, according to the airline.
The Cargo Consolidation Plan
At the heart of the operational changes is a decision to bring all cargo handling at Schiphol under one roof. KLM will consolidate freight operations from both passenger and cargo aircraft into its own warehouse, with the aim of attracting more transfer freight through Schiphol as a hub, the airline has confirmed.
A new cargo terminal at Schiphol is scheduled for completion in 2035, KLM says. In the meantime, the airline is committed to handling increased cargo volumes without taking on additional staff, relying instead on the productivity and process improvements that the restructuring is designed to deliver.
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The Financial Targets Behind the Plan
A further €1bn uplift in annual earnings is among KLM's targets, a goal Brouns set out plainly: "These measures will help us increase revenue and further reduce our structural costs. We need to make a major leap forward. Improving our annual earnings by €1 billion is essential to delivering our strategy and focusing on what sets KLM apart."
Air Cargo News reports that KLM's 'Back on Track' programme has already delivered structural improvements of more than €750m. The Loadstar reports that KLM is targeting at least 8% structural productivity increase by 2028.
The restructuring forms part of a wider picture at group level. The Loadstar reports that KLM posted a Q3 adjusted operating profit of €458m, up from a restated €352m in the same period a year earlier, while Air France-KLM group cargo revenue grew 25.2% year on year in Q3 to reach €677m. The Loadstar also reports that Air France-KLM pointed to tight market conditions as a contributor to that cargo growth, with the group noting: "The surge in air freight demand driven by AI-related supply chains tightened global market conditions."
Pressure on Costs Remains
Despite the improved financial results, KLM's leadership has been candid about the structural challenges that remain. CEO Marjan Rintel told The Loadstar: "Fuel prices continue to put pressure on our results, our cost base remains too high."
That candour underlines why the restructuring has been framed not merely as a cost-cutting exercise but as a precondition for investment. The airline's stated intent is to free up capital for new aircraft and improved customer service, areas where KLM has faced increasing competitive pressure from rivals with younger fleets and lower unit costs.
The Bottom Line
The KLM restructuring is one of the most significant operational overhauls the carrier has announced in recent years. Reorganising 5,000 roles while simultaneously building towards a new cargo terminal and a €1bn earnings improvement is an ambitious programme, and the timelines involved, stretching to 2028 for productivity targets and 2035 for the new terminal, mean the airline's progress will be measured over a long horizon.
For now, the direction is clear: a leaner workforce, consolidated cargo operations, and a sharper focus on Schiphol's role as a transfer freight hub. Whether the natural attrition and voluntary measures KLM is relying on prove sufficient to manage the workforce changes without industrial disruption is the near-term question to watch.
This article draws on reporting by Air Cargo News and The Loadstar.
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