Cash-strapped SpiceJet will lay off around 1400 employees, accounting for nearly 15% of its existing workforce, with the move aimed at cutting costs and to retain investor interest.
At its peak, in 2019, SpiceJet had 118 planes and 16,000 employees (File Photo/AFP)
In a statement to The Economic Times, the Gurugram-based budget carrier confirmed the job cuts.
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“This is to ensure an alignment of companywide costs as against operational requirements,” the statement quoted a SpiceJet spokesperson as saying.
‘Layoffs necessary because…’
Meanwhile, people aware of the developments attributed the layoffs to SpiceJet's salary bill of ₹60 crore.
“People have already starting getting calls (about being laid off),” a person said.
The airline has been delaying salary payment for ‘several months'; many staffers are yet to be paid for January.
On its part, SpiceJet told ET that it is in the process of getting a fund infusion of ₹2200 crore, adding, however, that some investors have developed ‘cold feet.’
“There aren't any funding delays and we are progressing well with our fund infusion; also, we have already made our public announcements accordingly. We will be making additional announcements as we progress on the next tranche. A majority of investors have subscribed,” the spokesperson said.
Employee strength and fleet
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Currently, the airline is served by 9000 people and operates 30 planes. At its peak, however, in 2019, it had 16,000 employees and 118 planes.
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Currently, the airline is served by 9000 people and operates 30 planes. At its peak, however, in 2019, it had 16,000 employees and 118 planes.
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At present, the budget carrier has a market share of around 4%, with its nearest rival on this front being Akasa Air, which as a 3500-strong staff and 23 planes.
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Home/Business/SpiceJet to lay off 1400 employees to save costs, retain investor interest
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