Air India is currently loss-making but said there won't be any major layoffs, as the company is dealing with black swan events from last year. CEO Wilson said that yearly increments may be deferred by one quarter in light of the tough economic conditions, and there is a need for the workforce to suspend discretionary spending and cut unwanted expenses.
During the Air India management board meeting, the agenda was to discuss cost-cutting measures as currently the airline is going through Rs 22,000 crore losses because of many reasons, including Pakistan airspace closure, US-Iran war, Ahmedabad AI 171 crash, and fuel prices increase.
According to the CHRO of Air India, it will continue with variable pay, and annual increments may be deferred by at least a quarter due to tough economic conditions. But, there won't be any layoffs as per Kumar's statement.
Also, the CEO said that there is a need to cut Air India's expenses and has requested the workforce to suspend discretionary spending and renegotiate prices. The CEO of Air India airline said that the company was not expecting any profits last fiscal year as losses were more than expected.
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