Air India to lay off 200 EmployeesTop Stories

March 16, 2024 08:47
Air India to lay off 200 Employees

Air India, in an effort to reorganize the Tata Group's aviation business, is expected to lay off approximately 200 employees. According to the report, less than 1 percent of Air India's workforce will be affected as they did not participate in voluntary retirement plans or utilize the company's reskilling initiatives. Air India Express, a subsidiary of the group, employs over 6,200 individuals, while Air India itself has a staff of more than 18,500. When the Tata Group acquired the airline, there were a total of 12,085 employees, including contract workers. Since the takeover in January 2022, efforts have been made to streamline the business model of the loss-making carrier. During the privatization of Air India, an agreement was reached between the government and the new owners that required the retention of all employees for a year. The report stated that more than 2,500 workers took advantage of the airline's two previous voluntary retirement plans, as previously disclosed. "We are fulfilling all contractual obligations throughout this process," said an Air India spokesperson to The Economic Times. The retrenched staff will receive a compensation package equivalent to 15 days of income for each year of service with the airline, according to the report.

Throughout our long-term initiative for transformation, we are witnessing the emergence of a brand new Air India. A crucial aspect of this transformation involves the establishment of a flexible and efficient organizational structure that aligns with our business model, supporting our expansion and ambitions. In order to achieve this, employees in non-flying roles have been assigned positions based on both the organization's needs and individual merit, as explained by the spokesperson. To aid in the extensive restructuring of our staff, Air India enlisted the assistance of the Boston Consulting Group. As part of this project, the airline reconfigured organizational positions, brought in new talent, and increased wages for current employees to match those of newly hired individuals.

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Air India  Tata Group