1. JET AIRWAYS
BACKGROUND (SHRADDHA)
In October 2008, Jet Airways (India) Limited, one of India’s leading domestic airlines, decided to lay off more
than 1,000 employees to streamline its operations. The retrenchment was the second phase of its trimming
operations.
The first phase, which took place a day earlier, saw the airline showing the door to 850 cabin crew members. The
second phase of retrenchment included employees from all operations - cabin crew, pilots, ground staff, airport
services staff, and employees from management departments.
The sudden decision not only took the employees by surprise but also caused alarm in the Indian aviation
sector. Amidst great furor and opposition by various organizations and political parties, Naresh Goyal, chairman
of Jet, reinstated the employees a day later amidst great emotional drama.
A month later - in November 2008, Jet announced that it would consider serious salary cuts for its staff to
handle the aviation crisis.
While many industry analysts were surprised by the turn of events that had led to the reinstatement of the
sacked employees, they opined that Jet had been forced to take drastic decisions such as laying off employees or
initiating pay cuts because of the turbulent phase through which the aviation industry was passing.
In September 2008, the International Air Transport Association (IATA) had predicted that world over the
aviation industry would lose about US$5.2 billion based on an average jet fuel price of US$140 . The rise in fuel
prices had pushed the fuel bills of the aviation industry to US$186 billion by the end of the year 2008.
QUESTION 1 (NEHA)
Can you analyze the possible problems faced by the HR department?
1. Downsizing: Though the downsizing methods used varies from organization to organization, the active
involvement of senior employees helps achieve downsizing goals and objectives with little loss
in quality or quantity of service. The presence and accessibility of senior leaders has a positive
impact on employees – on those who are downsized as well as the survivors
2. Appropriate planning: HR must look closely at employee skill sets, his achievement and
Capabilities, how unique they are in terms of the current and future needs of the company and
ofcourse performance.
3. Face-to-face Communication: Company executives are often paranoid when it comes to
releasing information internally about the company’s financial performance or possible layoffs,
fearing that the information will get into the public domain. Yet employees are invested in
the future of a company and deserve to know the truth.
QUESTION 2 (MAHIMA)
The 2008 Jet Airways layoff resulted in a severe backlash not just from employees but also from the
government, political parties and regulatory bodies who forced the airline to take back the sacked people. Some
commented on the manner in which it was conducted-employees waiting at home for office transport found
that the vehicles never came; when some of them reached the airport on their own, they discovered that their
jobs were in jeopardy.

2. How should have been the layoff handled??
In bad times, it’s natural for companies to cut costs, and reducing headcount is one of the ways to do that. But
it was the method of communication that infuriated employees and resulted in widespread public protests.
1. When delivering a bad news, surprise is not good. There has to be ample notice, and key employee
champions need to be taken into confidence before any such announcement is made. Moreover, a
transition plan must be in place.
2. Even more important than the plans is the way the message is communicated. A number of Jet
Airways employees received “pink slips” on their mobile phones via text messages. Some received
emails. That seems to be the absolute height of disregard for employee welfare. Good communication
is key to keeping the brand trust intact – just like dealing with customers. Such decisions need to be
communicated face-to-face and in-person so that both parties have a chance to explain their side of
the story well. Even if the employee has to be let go, he or she would understand well the reason for
expulsion.