Amid financial strain, SpiceJet to lay off approximately 1400 employees, representing nearly 15% of its current workforce. The Gurugram-based budget carrier confirmed the job cuts in a statement to The Economic Times, aiming to reduce costs and maintain investor interest.
SpiceJet disclosed that it has initiated measures to downsize its workforce, with a goal of saving 1 billion rupees ($12 million) annually. Although the carrier did not confirm the exact number of job cuts, earlier reports by the Economic Times suggested the figure. The move underscores SpiceJet’s efforts to align companywide costs with operational requirements, as stated by a company spokesperson.
SpiceJet Layoffs Attributed to Salary Bill as Funding Infusion Progresses
SpiceJet spokesperson stated, “This is to ensure an alignment of companywide costs as against operational requirements.” Individuals familiar with the matter attributed SpiceJet layoffs to ₹60 crore salary bill.
As per reports, individuals have begun receiving layoff notifications. The airline has delayed salary payments for several months, with many staffers awaiting January payments. SpiceJet informed ET that it is in the process of securing a ₹2200 crore fund infusion. It acknowledged, “There aren’t any funding delays, and we are progressing well with our fund infusion. A majority of investors have subscribed.” Additional announcements regarding the next tranche are anticipated.
SpiceJet Employee Strength and Fleet Dynamics
Currently, the airline employs 9000 people and operates 30 planes. In contrast, at its peak in 2019, SpiceJet boasted 16,000 employees and a fleet of 118 planes.
As of now, the budget carrier commands a market share of approximately 4%. Its closest competitor in this regard is Akasa Air, with a workforce of 3500 employees and a fleet comprising 23 planes.