Job Cuts: Air India Trims 180+ Non-Flying Positions

Tata-owned Air India has trimmed its workforce by laying off over 180 non-flying staff in recent weeks. This move comes as part of the airline’s ongoing efforts to restructure its operations and improve its bottom line. Air India, acquired by the Tata Group in January 2022, has grappled with significant financial losses for years.

Limited Uptake of VRS and Reskilling Initiatives

While the exact number of affected employees remains undisclosed, reports suggest it’s slightly above 180. This represents roughly 1% of Air India’s total workforce of approximately 18,000 employees. Air India has clarified that the layoffs were a last resort after the targeted staff members were unable to take advantage of the Voluntary Retirement Schemes (VRS) offered in the past 18 months. The airline also provided reskilling programs to help employees transition to new roles within the organization. An Air India spokesperson emphasized a thorough evaluation process for all employees. However, termination became necessary for a small percentage who couldn’t utilize the VRS or reskilling initiatives.

Vihaan.AI: Streamlining for Growth

These layoffs are part of Air India’s multi-year transformation program, Vihaan.AI. This ambitious initiative aims to create a more agile and efficient organizational structure. Key focus areas of Vihaan.AI include:

• Cost Optimization: Reducing operational expenditure is crucial for Air India’s financial turnaround. The recent staff reduction is a step in that direction.
• Operational Improvements: Streamlining processes and improving efficiency across various departments will be a key driver of profitability.
• Network Expansion: Vihaan.AI aims to strategically expand Air India’s network to tap into new markets and increase passenger traffic.

Employee Impact and Air India’s Future

While the job cuts are undoubtedly unsettling for the affected employees, Air India maintains that they are essential for the airline’s long-term survival and future growth. The airline’s financial performance will be closely monitored in the coming months to gauge the effectiveness of the restructuring efforts. The success of Vihaan.AI will determine whether Air India can emerge from its financial struggles and reclaim its position as a leading Indian carrier.

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