GURGAON- Struggling financially, Indian low-cost airline SpiceJet (SG) is preparing to reduce its workforce by laying off 1,400 employees, constituting nearly 15% of its current staff, in an effort to control costs and maintain investor confidence.
The airline, which currently employs 9,000 individuals and operates around 30 planes, includes eight aircraft that are wet-leased from foreign carriers, complete with their respective crews and pilots.
SpiceJet to Fire 1400 Employees
SpiceJet has officially confirmed these job cuts to the Economic Times, citing the need to align overall company costs with operational necessities as the rationale behind this decision.
The necessity for staff cuts arises from the airline’s ₹60 crore salary expenditure, according to individuals familiar with the situation.
“People have already begun receiving termination calls,” mentioned one source, referring to the ongoing layoffs. SpiceJet has been experiencing delays in salary payments for several months, with many employees still awaiting their January pay.
No Funding Delays
Despite SpiceJet’s announcement of a forthcoming fund infusion of ₹2,200 crore, some investors are reportedly hesitant to proceed.
The spokesperson responded, “There are no funding delays, and our fund infusion is advancing smoothly. We have already made public announcements, and additional updates will follow as we progress with the next tranche. The majority of investors have already subscribed.”
In 2019, SpiceJet reached its zenith with a fleet of 118 planes and a workforce of 16,000 employees.
Akasa Air (QP), its closest competitor in terms of market share, maintains a fleet of 23 planes and employs 3,500 individuals. Both airlines command nearly 4% each of the domestic market share.
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