Air India Implements Staff Layoffs Amidst Organizational Restructuring.

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Air India Implements Staff Layoffs Amidst Organizational Restructuring.

Team Finance Saathi

16/Mar/2024

Key Points:

Air India recently laid off over 180 non-flying staff due to organizational restructuring.
The airline cited the inability of affected employees to utilize voluntary retirement schemes and reskilling opportunities.
Efforts to streamline operations have been ongoing since the Tata Group took over in 2022, with multiple voluntary retirement schemes offered.

In recent weeks, Air India, under the ownership of the Tata Group since January 2022, has undergone significant organizational changes, resulting in the layoff of over 180 non-flying staff members. This move comes as part of the airline's broader efforts to streamline its operations and adapt to evolving market dynamics.

The decision to lay off employees was attributed to their inability to take advantage of voluntary retirement schemes (VRS) and reskilling opportunities provided by the company. While Air India had extended these options to its workforce, less than 1 percent of employees were unable to utilize them effectively, leading to the unfortunate necessity of parting ways.

According to an Air India spokesperson, the layoffs were conducted as part of a comprehensive fitment process, wherein employees were reassigned roles based on organizational needs and individual merit. Over the past 18 months, the company has diligently evaluated the suitability of all its staff, offering multiple VRS and reskilling opportunities in the process. Despite these efforts, a small fraction of employees found themselves unable to transition, prompting the layoffs.

It's important to note that Air India did not disclose the exact number of employees affected by the layoffs. However, the airline emphasized its commitment to honoring all contractual obligations throughout the process, ensuring fairness and transparency.

Since the takeover by the Tata Group, Air India has been undergoing a series of transformations aimed at revitalizing its business model and enhancing efficiency. Two rounds of VRS have been offered to employees as part of these efforts, reflecting the company's commitment to facilitating smooth transitions and optimizing its workforce.

The recent layoffs come amidst the implementation of Vihaan.AI, a multi-year transformational initiative aimed at building a more agile and effective organizational structure aligned with the airline's expansion goals and ambitions. As Air India continues to navigate the complexities of the aviation industry, these strategic measures underscore its determination to adapt and thrive in a competitive market environment.

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Air India Implements Staff Layoffs Amidst Organizational Restructuring.

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