Air India says about 4,500 employees have chosen to take up the airline’s voluntary retirement offer.

That equates to over one third of the workforce.

The voluntary retirement scheme is part of owner Tata Group’s revamping of the airline to cut costs and transform it into modern, more agile business.

Air India has a total 12,000 permanent and contract employees.

Around 5,000 Air India staff are to for retire within the next five years.

“This is work-in-progress and we all are in for the long transformation haul. We are also buying topnotch aircraft and we also need topnotch talent, “the airline said.

Air India announced the scheme in June for permanent employees.

The Tata Group acquired Air India in January with a condition that there are no compulsory redundancies for one year.