Air India Rules Out Layoffs Amid Middle East Crisis

Air India has told employees that it does not anticipate layoffs despite mounting financial pressures linked to the Middle East conflict, while also directing teams to sharply reduce costs and suspend discretionary spending. The airline's chief human resources officer, Ravindra Kumar GP, assured staff of no job cuts during a townhall meeting on Friday.

Air India CEO Campbell Wilson urged employees to maintain a "laser sharp focus" on cutting unnecessary expenses and improving operational efficiency, calling for a "relentless focus on costs in these tough times".

The Tata Group-owned carrier is facing multiple headwinds due to the ongoing Middle East conflict, which has significantly increased operational costs, with airspace restrictions and rising jet fuel prices adding pressure on the loss-making airline.

The airline will proceed with variable pay for the last financial year and continue with planned promotions, although annual salary increments will be deferred by at least one quarter due to the uncertain economic situation. The company's management will closely monitor the situation and take further steps as necessary, with the next steps expected to be announced in the coming weeks as the airline continues to navigate the challenging operating environment.