According to a report from The Economic Times, Air India is anticipated to implement layoffs affecting approximately 200 employees as a component of the Tata Group’s broader restructuring of its aviation business.
As per insights provided by The Economic Times, Air India is poised to trim its workforce by approximately 200 individuals, aligning with the Tata Group’s strategic reorganization efforts within the aviation sector.
As per Air India’s statement, the reported layoffs will affect less than 1 percent of its workforce, comprising individuals who opted out of voluntary retirement schemes or declined participation in the company’s reskilling initiatives.
With over 18,500 employees, Air India’s subsidiary, Air India Express, boasts a workforce of over 6,200 individuals. Notably, at the time of acquisition by the Tata Group, the airline employed a total of 12,085 workers, including contractual staff.
Since the Tata Group’s acquisition of the airline in January 2022, endeavors have been ongoing to streamline its business operations. As part of Air India’s privatization process, a one-year employment retention agreement was reached between the government and the new owners. The report reveals that more than 2,500 employees availed themselves of the airline’s two voluntary retirement schemes previously disclosed.
“We are committed to fulfilling all contractual obligations throughout this transition,” affirmed a spokesperson for Air India to The Economic Times. According to ET’s report, retrenched employees are slated to receive a compensation package equivalent to 15 days of wages for each year of service with the airline.
“In the scope of our multi-year transformative endeavor, we are witnessing the emergence of a revitalized Air India. A pivotal facet of this evolution involves establishing an agile and efficient organizational framework that aligns with our business model, facilitating our growth and aspirations. In the process of organizational alignment, employees in non-flying roles have been reassigned positions based on organizational requirements and individual merit,” the spokesperson informed ET.
To aid in the extensive staff restructuring, Air India enlisted the expertise of Boston Consulting Group. The airline undertook a comprehensive overhaul of organizational roles, recruited new talent, and adjusted salaries for existing staff to match those of incoming hires as part of this initiative.