Reliance Industries (RIL) has decided to downsize the employee strength in its aviation turbine fuel (ATF) business following the poor performance of the aviation industry. As a first step, the company has issued termination letters to over 20 employees at its fuel farm at the Hyderabad international airport, sources close to the development said.
“The company looking to cut its work force in Varanasi, Raipur, Jabalpur, Gaya, Jaipur, Lucknow and Calicut due to the slump in the ATF business. Overall 140 employees are working in the ATF division, which began operations last year,” the sources said.
In the termination letters, RIL mentioned that the business has been impacted by the slowdown and the company was not in a position to continue with their employment. Employees who would resign will get one month's salary as compensation. When contacted, an RIL spokesperson declined to comment on the development.
The Mukesh Ambani Group flagship had got the approval from the Airports Authority of India (AAI) to set up its aviation fuel business at 25 non-metro airports in 2006. It has land at these airports for the infrastructure to store and retail ATF.