Air India Cuts 180+ Non-Flying Jobs

Tata-owned Air India has shed over 180 non-flying staff in recent weeks, a move aimed at streamlining operations and improving its bottom line. The airline, acquired by the Tata Group in January 2022, has grappled with significant financial losses for years.

Voluntary Retirement and Reskilling Initiatives

Air India claims the affected employees were unable to participate in the Voluntary Retirement Schemes (VRS) offered throughout the past 18 months. These schemes were designed to incentivize early retirement for eligible staff members. The airline also provided reskilling opportunities to help employees transition to new roles within the organization, aiming to minimize job losses.

An Air India spokesperson, while not disclosing specific details on the number of VRS applications received, did highlight a comprehensive evaluation process for all employees. They stated that termination became necessary for a small percentage who couldn’t utilize VRS or reskilling initiatives.

Numbers Behind the Restructuring

While the exact number of layoffs remains undisclosed, reports suggest it’s slightly above 180. This represents roughly 1% of Air India’s total workforce, which sits around 18,000 employees.

Air India’s Transformation Plan: Vihaan.AI

The layoffs are part of Air India’s multi-year transformation program, Vihaan.AI. This program seeks to create a more agile and efficient organizational structure by focusing on three key areas:

  • Cost Optimization: Reducing operational expenditure is crucial for Air India’s financial recovery. Layoffs are one element of this strategy, alongside potential route adjustments and renegotiating vendor contracts.
  • Operational Improvements: Vihaan.AI aims to streamline internal processes and enhance efficiency across departments. This could involve implementing new technologies and restructuring workflows.
  • Network Expansion: Despite the staff reduction, Air India plans to expand its network. The airline aims to leverage the Tata Group’s expertise to offer new routes and potentially acquire new aircraft.

Impact and the Road Ahead

The job cuts are likely to cause concern for the affected employees. However, Air India maintains that these measures are essential for the airline’s long-term survival and future growth. The airline’s financial performance in the coming months will be closely monitored to assess the effectiveness of the restructuring efforts.

This move by Air India reflects a broader trend within the aviation industry, where airlines are grappling with rising fuel costs and a competitive landscape. It remains to be seen if Air India’s workforce restructuring, coupled with Vihaan.AI’s initiatives, will lead to a successful turnaround.

Recent Blog : Flipkart Valuation Takes Rs 41K Cr Hit in 2 Years



Send Us A Message