DesiNew – Daily Breaking News and Updates

IndiGo Layoffs: to lay off 10% of employees IndiGo | India Business News

Let’s Start this Interesting Article Shared on

NEW DELHI: Coronovirus has a huge impact on aviation Indigo Deciding to reduce your employee strength by 10%. This is the first time that India’s only cash-rich airline has decided to take such a step to avoid a recession. Indigo has approximately 24,000 employees. Its employee cost was Rs 4,395.4 crore in FY 2019-20.
All Indian carriers are struggling to survive and the government is yet to provide any relief to the region. On the other hand, jet fuel prices have risen sharply after two months of suspension were allowed to resume domestic flights on 25 May.
“… It is impossible for our company to fly through this economic storm without sacrificing something to sustain our business operations. Therefore, after carefully assessing and reviewing all possible scenarios, it is clear that we will need to bid up a painful adieu to 10% of our workforce. This is the first time in the history of Indigo that we have taken such a painful remedy. This is indeed a very unfortunate turn of events from the optimistic development trajectory that we had carved for ourselves just six months earlier; But this epidemic has forced us to re-evaluate our best laid plans, “a note Indigo CEO Ronjoy Dutta Said on Monday.
Indigo has created a “6E Care Package” for the affected employees, under which they will be paid notice and paid salary in lieu of applicable service notice, which is paid for one full month of CTC for each completed year of service. Subject will be calculated as 12 months maximum. “At a minimum, an affected employee will receive a gross salary of at least three months, including the above payments,” the note said.
More on Kovid-19

The bonus for the financial year 2019-20 will be paid when the company decides to pay the remaining employees of this financial year, even after the affected employees leave. Gratuity, holiday encashment and longevity bonus (for cabin crew) will also be given. Medical insurance coverage for affected employees will be extended by December 2020. There will also be a provision to continue the policy post till December 2020 as per the market rates. For employees who covered their parents through the policy, such insurance would be extended until December 2020. Payments will be borne by employees, as present.
He said, “This is one of the most difficult decisions we will have to take and we are ensuring that the transition process is completed radically, professionally for the affected employees; and with the utmost respect and compassion.” We want to express our heartfelt gratitude to all our people and to those who have stood by us through thick and thin; we believe that individually as well as collectively, we are in this crisis. Will exit
Dutta listed the steps that the airline had taken so far in the face of the epidemic. “… Aviation has been one of the areas most affected (by the epidemic). Even now, IndiGo is flying only a small percentage of its full fleet of 250 airplanes … IndiGo was one of the few airlines globally that completed a full year for the months of March and April 2020 despite business interruption The salary was paid. After this, we had to take various measures, such as salary cuts, leave without pay and many other costs; But unfortunately, these cost savings are clearly not enough to compensate for the decline in revenue, ”said his note.


Exit mobile version