Friday, 28 November 2014 - 08:57
KLM freezes all cabin crew hiring
KLM has stopped hiring new cabin crew, according to the Association of Dutch Cabin Crew (VNC). KLM has confirmed this. The airline company wants more productivity from its current employees, which would make the hiring of new cabin crew unnecessary. This is part of a plan to cut costs by 700 million euro. "The world has changed fundamentally and KLM must continue with fewer layers, higher productivity and less people." states an internal document of the airline company. "We are too expensive, too complicated and have become too slow." It continues. "Doing nothing is not an option. Our current margins are too small for the necessary investments. We need to change and everyone is necessary for this." According to KLM, "a mix of initiatives" will be needed to beat the competition. These include increasing he revenue, purchasing products and services more sharply, reducing certain investments, and intervening in "labor and organization". KLM CEO Pieter Elbers says that a "flatter" organization will be required. According to him, the unit costs must also decrease by 1.5 percent each year. Last month it was rumored that KLM would be cutting 7,500 jobs. According to Elbers there is "currently no question of forced redundancies".