Air India LAYOFFS! Tata Airline's BIG decision, to lay off 200 staff members – Details

According to Air India, these retrenched employees represent less than 1% of its workforce, comprising individuals who did not participate in voluntary retirement schemes or take advantage of the reskilling opportunities provided by the airline.

At the time of the Tata group's acquisition of the airline, Air India boasted over 18,500 employees, while its subsidiary, Air India Express, had approximately 6,200. Combined, the workforce of both airlines, inclusive of contractual workers, totalled 12,085 individuals.

As per an ET report, an Air India spokesperson stated that "Air India is ensuring fulfillment of all contractual commitments throughout this transition". Furthermore, employees being laid off will receive compensation equivalent to 15 days' salary per year of service, as outlined in a communication seen by ET.

The conglomerate assumed control of Air India in January 2022, mandated by the government to retain all employees for a year post-privatization. The airline had previously introduced two voluntary retirement schemes, utilized by over 2,500 employees.

"As part of our ongoing transformation, we are witnessing the emergence of a revitalized Air India. A crucial aspect of this transformation involves establishing an adaptable organizational structure aligned with our business model to facilitate growth and aspirations," the spokesperson stated.

Employees in non-flying roles have been reassigned based on organizational requirements and individual merit, following a comprehensive evaluation process spanning 18 months, inclusive of various VRS schemes and reskilling opportunities. For those unable to avail these options, separation becomes necessary.

Boston Consulting Group was enlisted to streamline Air India's workforce, resulting in the infusion of new talent, redefined roles, and salary adjustments to align with industry standards. In FY23, Air India reported a widened net loss of ₹11,381 crore due to write-offs and exceptional items.

Post the Air India acquisition, the Tata group has streamlined its aviation business, merging Air India Express and AirAsia India to form a low-cost carrier, with Vistara slated for integration into Air India to establish a full-service carrier. To bolster its workforce,

 Air India has undertaken aggressive hiring from competing airlines and other sectors, tapping talent from within the Tata group as well. According to an ET report, Satya Ramaswamy, Air India's Chief Digital and Technology Officer, said that "We've recruited over 250 top graduates from premier institutions. Our technology teams in Kochi and Gurugram are attracting industry-leading talent".