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IndiGo to lay off 10% of their total workforce, says CEO Ronojoy Dutta

As of March 2019, IndiGo’s 23,531 workforce had 3,187 pilots and 6,248 cabin crew.

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Most businesses – local or global, are severely hit by the ongoing Coronavirus pandemic. India’s biggest flight company by market share, IndiGo is not an exception to it. The airline is also struggling to keep up and fly its planes. And since no relief seems to be coming anytime soon from the current situation COVID-19 pandemic and the consequential shutdowns. IndiGo has decided to lay off  10% of its 28,000 total workforces.

A senior executive at IndiGo said this move won’t affect the pilots as of now. Pilots and cabin crew at IndiGo constitute 40% of the airline’s total workforce.

Caricature from IndiGoImage from GoIndiGo.in

In a note, IndiGo’s chief Ronojoy Dutta mentioned that the employees impacted by this decision will be paid during their notice period, as applicable to them.

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“In addition to notice pay, impacted employees will be paid a severance pay which will be calculated as one month of CTC (cost to company) for every completed year of service, subject to a maximum of 12 months..,” CEO Dutta said in the note. “At a minimum, an impacted employee will receive at least 3-months’ gross salary, including both the above payments,” he added.

Impacted employees and their parents will get an extension for their medical insurance coverage until December 2020.

This decision by the airline is taken at a time when its rival carriers are facing an acute cash crunch. IndiGo, the preferred carrier of half of India’s domestic passengers, is in a better position as at the end of the month of March, it held Rs 20,377 crore, more than the combined cash reserves of most of its rival companies.

Last month, IndiGo slashed 45%  from the salaries of some pilots and brought into effect some additional furloughs, continuing the measures started in May by the airline.

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“It is impossible for our company to fly through this economic storm without making some sacrifices, in order to sustain our business operations,” the airline’s chief said in his note.

Inputs: EconomicTimes.indiatimes.comIndiGo’s Twitter handle

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