Tata-owned Air India has recently taken steps to restructure its workforce, resulting in the layoff of over 180 non-flying employees. According to PTI reports, the company cited the inability of these employees to make use of voluntary retirement schemes (VRS) and re-skilling opportunities as the reason behind their departure.
Efforts Towards Streamlining
Since Tata’s acquisition of the airline in January 2022, efforts have been underway to streamline its business model. A spokesperson highlighted that employees in non-flying roles have been reassigned based on organizational needs and individual merit.
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Comprehensive Assessment Process
The spokesperson emphasized a thorough assessment process conducted over the past 18 months to determine employee suitability. During this period, multiple VRS and reskilling opportunities were provided to employees.
Employee Departure
While the company did not specify the exact number of staff laid off, reports suggest it to be slightly over 180 employees. The spokesperson clarified that one percent of the workforce who couldn’t avail themselves of VRS or re-skilling opportunities had to part ways, with the company ensuring fulfillment of all contractual obligations.
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Transformational Initiative
Air India’s transformational initiative, Vihaan.AI, aims to establish an agile and effective organizational structure aligning with the business model to facilitate expansion and ambition, according to the spokesperson.
Industry Insights
In other industry developments, domestic air traffic saw a 4.8 percent increase annually, reaching ₹1.26 crore last month. However, flight delays affected over 1.55 lakh passengers during the same period, as reported by PTI. Additionally, Air India’s market share in February rose to 12.8 percent, while IndiGo’s marginally dipped to 60.1 percent, compared to January figures.