The India-based low-cost carrier IndiGo, has announced that it will reduce its workforce by 10% as the company aims to weather the current pandemic.
Chief Executive Officer Ronojoy Dutta said; “And from where things stand currently, 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 “will need to bid a painful “GOODBYE” to 10% of its total workforce.
IndiGo airline has tried a number of measures in order to avoid involuntary layoffs, by flying a small percentage of its fleet, including pay cuts and furloughs, but the decline in revenues is just too much, said the CEO.
In its latest earnings call, the carrier‘s chief financial officer (CFO) Aditya Pande indicated that the company aims to reduce its employee costs by 25% by the year‘s end. In FY2020, the airline‘s employee costs were at $588 million (INR43.9 billion), the second-largest expense throughout the year.
For the affected employees, the company has offered a severance package that includes notice pay, severance payments, medical insurance, and further career support.
Prior to the COVID-19 outbreak, IndiGo made headlines when it made a record-breaking order for 300 Airbus A320 family aircraft, including the A321XLR. As of March 31, 2020, it had 262 aircraft.
Source: aerotime.aero