SpiceJet to lay off 1,400 employees in cost-cutting measure

Feb 12, 2024

cash crunch budget airline SpiceJet is planning to lay off 1,400 employees, which is about 15% of its workforce. The move is aimed at reducing costs and attracting investors. currently, spicejet It has a total of 9,000 employees and operates around 30 aircraft, eight of which are leased from foreign carriers with their respective crew and pilots.
According to an ET report, SpiceJet has officially confirmed the job losses and said it is necessary to align company-wide costs with operational requirements. The carrier's wage bill, which stands at Rs 60 crore, has necessitated the reduction in staff.
Employees have already started receiving termination calls as the airline has been delaying salary payments for several months, with some employees still waiting for their January salaries.
Although SpiceJet is in the process of raising funds worth Rs 2,200 crore, there have been reports of hesitation from some investors. However, the airline spokesperson has clarified that there is no delay in funding and they are making good progress with infusing the funds.
The spokesperson also mentioned that additional announcements will be made by SpiceJet as they move ahead with the next tranche, and that most of the investors have already subscribed.
In 2019, SpiceJet reached its peak with a fleet of 118 aircraft and a workforce of 16,000 employees. Its nearest competitor in terms of market share is Akasa Air, which has 3,500 employees and a fleet of 23 aircraft. Both airlines have about 4% share in the domestic market.

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