Some employees feel the situation has been exaggerated so that staff quits voluntarily
Jet Airways has told its employees that it won’t be able to operate beyond 60 days unless cost-cutting measures are put in place, The Economic Times reports.
The cost-cutting measures include pay cuts, the report adds.
The airline on Thursday said it is implementing various measures across sales and distribution, payroll and maintenance.
"We have been informed that the airline cannot run beyond two months and the management needs to cut costs through pay cuts and other means to ensure that it stays afloat. The airline did not inform us about all this all these years and it has dented the trust of employees in the management," a senior Jet Airways senior executive told the paper.
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Employees have been wondering how they should interpret the warnings. Some feel the situation has been exaggerated to force some employees to leave voluntarily.
Moneycontrol could not independently verify the news.
Rising cost of operations has forced the airline to consider measures to save costs.
"In line with its stated focus of creating a healthier and more resilient business, Jet Airways has been implementing several measures to help it reduce costs as well as realise higher revenues, for desired business efficiencies. Some of these include sales and distribution, payroll and maintenance, among many others," Jet Airways said in a statement on Thursday.
Chairman Naresh Goyal has spoken to employees regarding the cost-cutting measures.
Jet Airways has already begun firing people from different functions and has asked people from the engineering department to leave, executives told ET.
"In the engineering department, head of line for Delhi has been asked to leave. Job losses will start to happen in functions like cabin crew and ground handling," executives told the paper.