Middle East crisis: Air India says no layoffs planned, asks staff to cut discretionary spending

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.During a townhall meeting on Friday, Air India chief human resources officer Ravindra Kumar GP assured staff that job cuts were not expected even as the airline navigates a difficult operating environment.“We don't anticipate layoffs,” Kumar told employees, according to news agency PTI.The management, however, indicated that annual salary increments would be deferred by at least one quarter due to the uncertain economic situation.Kumar also said the airline would proceed with variable pay for the last financial year and continue with planned promotions.Air India CEO Campbell Wilson asked 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”, Wilson urged staff to suspend discretionary spending, renegotiate rates wherever possible and defer non-critical expenditures.“There must be a laser sharp focus on eliminating wastage and leakages,” he said, as per PTI.The townhall was also attended by chief financial officer Sanjay Sharma.The Tata Group-owned carrier is facing multiple headwinds due to the ongoing Middle East conflict, which has significantly increased operational costs.Airspace restrictions and rising jet fuel prices have added pressure on the loss-making airline at a time when it is implementing an ambitious transformation plan aimed at modernising operations and improving profitability.The conflict-driven disruptions have impacted flight routes and increased fuel expenses for airlines globally, with carriers operating international routes among the worst affected.