SpiceJet to Lay Off 1,400 Staff to Cut Costs, Stay Afloat

SpiceJet, the Indian low-cost airline based in Gurgaon, Haryana, announced it will terminate employees as it continues to struggle financially. The company said it may have to lay off about 1,400 employees.

As per BNN Breaking, SpiceJet reduced its workforce to trim down costs and retain investor interest. These layoffs will affect almost 15% of the airline's workers.

SpiceJet's Financial Woes

SpiceJet has been struggling to stay in business due to financial problems. It was revealed that the company was already behind with salary payments, which had been delayed for several months. Some staff are still waiting for their January salaries. The firm also needs to pay ₹60 crore monthly salary bill.

The budget airline is seeking a ₹2200 crore funding remedy to preserve and sustain its business operations. However, SpiceJet's future remains uncertain, especially for employees affected by the layoffs, since the country's aviation industry has not yet fully recovered from the pandemic.

"This is to ensure an alignment of companywide costs as against operational requirements," The Hindustan Times quoted the company's spokesman as saying in a statement regarding the layoffs. "We have already made our public announcements accordingly and will be making additional announcements as we progress on the next tranche. A majority of investors have subscribed."

Downsizing Operations

Aside from the job cuts, Money Control reported that SpiceJets also lessened the number of aircraft in operation.

Currently, it is flying about 30 planes, including eight wet-leased from foreign carriers, including the pilots and crew. This shows a considerable shift - compared to when SpiceJet was operating at its peak in 2019, with a fleet of 118 jets in full operation and a workforce of 16,000 employees.

Photo by: SpiceJet Newsroom