Indigo has announced that it will shed 10 per cent of its workforce, owing to the economic crisis induced by the pandemic.

Chief executive officer Ronojoy Dutta said, “It is for the first time in the history of Indigo that we have undertaken such a painful measure. This is indeed a very unfortunate turn of events from the optimistic growth trajectory we had carved out for ourselves just six months ago, but this pandemic has forced us to re-evaluate our best-laid plans.”

The low-cost carrier has introduced a ‘6E Care package’ for the impacted employees which includes financial assistance, medical insurance and air tickets. The financial package covers:

  • Affected employees will be offered notice pay in lieu of serving notice applicable to them.
  • Along with the notice pay, they will also be given a severance pay which will be calculated as one month of CTC (the cost to company) for every completed year of service, subject to a maximum of 12 months.
  • At a minimum, employees will receive at least three months’ gross salary, including both the above payments.
  • Payment of bonus / Performance Linked Incentive (PLI) shall be made when the airline decides to make the pay-out to the rest of the employees in this financial year, even after the impacted employee’s exit.
  • For the year 2020, longevity bonus will be given to eligible crew members. Leave encashment, if any and gratuity, as applicable per Payment of Gratuity Act will also be looked after.

Medical insurance coverage for impacted employees will be extended until December 2020. There shall also be a provision to continue with the policy post the given period as per applicable market rates. For those employees who had covered their parents through the policy, such insurance will also be extended until December 2020. As is currently existing, payment will be borne by the employees.

Professional and emotional support will be extended by the airline. An “outplacement allowance” will be offered to the employees to seek professional help for career opportunities, outside Indigo. 

Each employee who has been impacted will receive a recommendation letter to vouch for their professional credentials. An assistance programme is in the pipeline.

The Indian carrier will also help employees with a one-way confirmed air ticket, in case they need to travel back to their hometown or base location.