By Facing financial challenges, budget airline SpiceJet is in the process of laying off 1,400 employees, constituting approximately 15% of its workforce. The strategic decision aims at cost reduction and enhancing the company’s appeal to potential investors. SpiceJet currently employs 9,000 individuals and operates a fleet of around 30 planes, with eight of them being leased from foreign carriers, complete with their respective crews and pilots.
An official confirmation from SpiceJet acknowledges the job losses, citing the necessity to align company-wide costs with operational needs. The carrier’s substantial salary bill, totaling Rs 60 crore, is a driving factor behind the decision to implement staff cuts.
As per an ET report, employees have started receiving termination notices, given the airline’s prolonged delay in salary payments over several months, with some staff members still awaiting their January pay.
Despite SpiceJet’s ongoing efforts to secure a fund infusion of Rs 2,200 crore, there have been reports of potential investors expressing hesitancy. However, the airline’s spokesperson has clarified that there are no delays in funding and reassures that the fund infusion process is progressing smoothly.
