Monday, March 26, 2012

Kingfisher likely to layoff half of its workforce

Kingfisher Airlines has been eyeing layoffs to save costs for some time. Now, a report by Zee News claims that half of the company’s employees may be asked to leave. “In order to resolve its deepening debt crisis, the Kingfisher Airlines might lay off 50 percent of its current employees, sources claimed on Monday. “Kingfisher is expected to make an official announcement regarding its decision to slash 50 percent of its current workforce later in the evening,” the Zee News report said. The airline has close to 6,000 people on its rolls and a majority of pilots have already left to join rivals such as IndiGo and Go Air because of mounting salary arrears and uncertainty surrounding the airline over the last many months. The possibility of large scale layoffs comes amid a fresh warning by Civil Aviation Minister Ajit Singh today that the airline must pay dues to vendors if its wants to continue operations. This warning came hours before the Directorate General of Civil Aviation (DGCA).

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