IndiGo to Let Go 10% of the Workforce as a Result of Global Pandemic

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The number one air carrier of India, IndiGo is going to let go 10% employees of its total workforce. The global pandemic has resulted in one of the biggest losses for the aviation industry in all of history. Many airlines are accumulating losses and are already in huge debt. The airline posted a net loss of 871 crores for the Jan-Mar quarter of 2020. This wasn’t a good thing for the airline but it survived as it had previous profits in cash. But it doesn’t necessarily mean a good thing. As a result of that, IndiGo is now going to lay off 10% of its workforce.

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IndiGo Will Look After its Employees

The airline is not going to leave its affected employees high and dry. It is going to provide the employees it is letting go off with severance pay. The CEO of IndiGo, Ronojoy Dutta said, “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. At a minimum, an impacted employee will receive at least three months’ gross salary, including both the above payments.”

Along with this, the employees were also offered medical insurance. So for those employees whom IndiGo is letting go are getting their medical insurance benefit extended until December. This is a sad thing for the airline and its employees. But it is a move which IndiGo will have to take to ensure they survive and thrive like before.

Just last month, IndiGo also slashed 45% salaries of its pilots. But this employee lay off is not going to affect the pilots of the airline. As of now, Indigo’s total workforce of 28,000 employees comprises of 40% pilots and cabin crew members. But pilots are protected from the move, thus they don’t have to worry about losing their job.

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Tanay hails from Bilaspur, Chattisgarh and is a sports and fitness enthusiast. Reading and writing is something which comes to him out of love for the web of magic that words can create.

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