IndiGo announced that is laying off 10 per cent of its workforce due to the coronavirus pandemic, its CEO said on Monday.
"We did have to undertake a number of measures such as pay cuts, leave without pay and various other costs; but unfortunately, these cost savings are clearly not enough to offset the decline in revenues. 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," Ronojoy Dutta, CEO, IndiGo said in a statement.
"Therefore, after carefully assessing and reviewing all possible scenarios, it is clear that we will need to bid a painful adieu to 10 per cent of our workforce. It is for the first time in the history of IndiGo that we have undertaken such a painful measure," Dutta said.
During the pandemic, airlines also found that their fleet size is almost over 250 aircraft and usage of the fleet is less in view of the COVID-induced lockdown. Before cutting the workforce, the airline company announced relief measures for the employees.
"Medical insurance coverage for impacted employees will be extended until December 2020. There shall also be a provision to continue with the policy post-December 2020 as per applicable market rates. For those employees who had covered their parents via the policy, such insurance will also be extended until December 2020. As currently exists, payment will be borne by the employees." the airline CEO said.
IndiGo has arranged one-way tickets for those employees who will lose their jobs."The impacted employees who need to travel back to their hometown or base location, we will assist them with a one way confirmed air ticket," the airline said further.
Recently India's national carrier Air India decided in their board meeting that they are planning to send compulsory leave without pay (LWP) to some employees from six months to up to five years.
( With inputs from ANI )