SpiceJet Layoffs: Budget Carrier To Slash 1,400 Jobs; Here's Why

SpiceJet news: SpiceJet has announced plans to reduce its workforce by approximately 15 per cent, equating to 1,400 jobs. SpiceJet currently employs a staff of 9,000 and manages a fleet of 30 aircraft, including eight planes that are wet-leased from international airlines complete with their crews and pilots, Economic Times reported.
SpiceJet news

Budget carrier SpiceJet has announced plans to reduce its workforce by approximately 1,400 people.

Photo : Twitter
SpiceJet news: In a bid to alleviate financial strains and maintain the interest of investors, the budget carrier SpiceJet has announced plans to reduce its workforce by approximately 15 per cent, equating to 1,400 jobs. SpiceJet currently employs a staff of 9,000 and manages a fleet of 30 aircraft, including eight planes that are wet-leased from international airlines complete with their crews and pilots, Economic Times reported.

Layoffs To Ease Monthly Wage ExpenditureThe airline has acknowledged the impending layoffs, citing the need for a realignment of operational expenses with company objectives. "This is to ensure an alignment of company-wide costs as against operational requirements," Economic Times cited a company spokesperson as saying. The decision for staff reductions comes in light of the airline's substantial monthly wage expenditure of Rs 60 crore, according to insiders familiar with the situation. Reports have emerged of employees being notified about their termination, as the airline has been experiencing delays in disbursing salaries, leaving many without their January wages.

SpiceJet Denies Funding Delays

SpiceJet has been actively seeking financial reinforcements, with plans to secure an injection of Rs 2,200 crore, though there have been whispers of hesitancy among some investors. The airline's spokesperson has refuted claims of funding delays, stating, "there aren't any funding delays and we are progressing well with our fund infusion and have already made our public announcements accordingly [...] We will be making additional announcements as we progress on the next tranche. The majority number of investors have subscribed."
In 2019, SpiceJet was at its zenith with 118 aircraft and 16,000 employees, currently sharing a near-equal slice of the domestic market with Akasa Air, which boasts a workforce of 3,500 for its 23 aircraft. Both carriers command a roughly 4 per cent share of the domestic aviation market each.
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