Dutch airline KLM has announced it is cutting 250 jobs as part of a cost-cutting effort. It hopes this will lead to an increase in operating profit of around 450 million euros.
The firm said it would try to avoid compulsory redundancies to achieve the cuts, but admitted it could not rule out the possibility.
The 250 jobs will be "non-operational", KLM chief executive Marjan Rintel said.
"Critical to our future is structural cost reduction, which involves making painful decisions," Rintel explained.
Other cost-cutting measures already announced by KLM include postponing the construction of a new headquarters as well as other maintenance buildings.
The firm is also looking to close down non-core activities and increase productivity by at least 5% through automation, mechanisation and reducing absenteeism.
KLM, along with Air France, reported a sharp drop in net profit for the third quarter last year.
The Franco-Dutch group recorded a net profit after tax of €824 million. This is 13% less than in the same three-month period last year. | BGNES
