Dutch airline KLM yesterday said that it would shed up to 5,000 jobs due to a “crisis of unprecedented magnitude” caused by the COVID-19 pandemic.
The carrier, the Dutch subsidiary of Air France-KLM, said the cuts through the end of next year were necessary, as it had huge losses despite a 3.4 billion euro (US$4.04 billion) Dutch government bailout.
The cuts would involve about 1,500 compulsory layoffs from KLM’s workforce of 33,000, it said.
There would also be 2,000 voluntary redundancies announced earlier this year, while further cuts would be made by not renewing 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 about 400 jobs at KLM subsidiaries and in the Air France-KLM group positions.
KLM said that 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 customer 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.
KLM on Thursday reported an unprecedented 768 million euro loss for the first half of this year, with passenger numbers falling 95 percent in the second quarter from 9 million to less than 500,000.
Air France-KLM on Thursday announced a total second-quarter loss of 2.6 billion euros, adding that the twin airlines must “significantly reduce” their workforce.
KLM and Air France are among a host of European airlines given state support to get through the crisis.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MediaTek Inc (聯發科) has hired a former US Department of Commerce official to help it navigate worsening US-China tensions that have already ensnared its customer Huawei Technologies Co (華為). Patrick Wilson, who most recently served as director of the department’s Office of Business Liaison, has been appointed vice president of government affairs at MediaTek USA to lead its public policy initiatives, the chip designer said in a draft press statement seen by Bloomberg News. Wilson previously worked at the Semiconductor Industry Association, where he led the trade group’s dealings with the US federal government. Technology companies with ties to or operations in China