India’s largest budget carrier IndiGo recently said that it has further deepened pay cuts for its senior employees and pilots by 10-13%. The recent development at the budget carrier comes just a week after it announced plans to lay off staff to tide over the coronavirus crisis.
According to a Mint report, the salary cuts are mostly limited to the company’s top management including Chief Executive Officer Ronojoy Dutta. While Dutta himself is taking a 35% cut, others such as senior vice-presidents will take a 30% cut, vice-presidents a 25% cut and associate vice presidents a 15% cut. A company official also said that the salaries of pilots will be reduced by up to 13%.
Earlier in May, IndiGo had initiated a 25% pay cut senior management including pilots, a similar move as its peers. The pay cuts then were accompanied with a graded leave-without-pay programme for all its employees until July to save on costs following the pandemic.
Dutta had taken a pay cut of 25% in May while his top management like Sr Vice Presidents had 20% cut. Vice presidents saw their salaries reduce 15% and those of associate vice presidents 10%.
Dutta, in an internal mail to employees, said the cuts are necessary to adjust the airline’s cost structure to the decline in revenues.
However, the airlines recently said that it was finding it difficult to overcome the economic impact of the virus without having to lay off staff. The company later resorted to laying off about 2,700 employees.
“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,” Dutta had said.
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