In response to financial pressures, budget airline SpiceJet is poised to lay off 1,400 employees, constituting nearly 15% of its workforce, in a bid to trim costs and bolster investor confidence. Currently, the airline employs 9,000 individuals and operates approximately 30 aircraft, eight of which are leased from foreign carriers along with accompanying crew and pilots.
Confirming the impending job losses, a SpiceJet spokesperson stated that the measure aims to align companywide expenses with operational necessities. The decision comes against the backdrop of the carrier's Rs 60 crore salary expenditure, according to sources familiar with the matter.
Reports indicate that affected individuals have already begun receiving termination notices, highlighting the urgency of the situation. SpiceJet has faced challenges in meeting salary obligations, with many employees still awaiting their January pay. Although the airline is in the process of securing a Rs 2,200 crore fund infusion, certain investors are reportedly hesitant to commit.
In its heyday in 2019, SpiceJet boasted a fleet of 118 aircraft and a workforce of 16,000 employees. Its closest competitor by market share, Akasa Air, maintains a fleet of 23 planes with 3,500 employees, commanding approximately 4% of the domestic market each.