SpiceJet to lay off 1,400 employees in cost-cutting measure – Times of India

Cash-strapped budget airline SpiceJet is planning to lay off 1,400 employees, which accounts for about 15% of its workforce. This move is aimed at reducing costs and attracting investors. Currently, SpiceJet has a total of 9,000 employees and operates around 30 planes, out of which eight are leased from foreign carriers, along with their respective crew and pilots.According to an ET report, SpiceJet has officially confirmed the job losses, stating that it is necessary to align company wide costs with operational requirements. The carrier’s salary bill, amounting to Rs 60 crore, has led to the need for staff cuts.Employees have already started receiving termination calls, as the airline has been delaying salary payments for several months, with some employees still awaiting their January pay.Although SpiceJet is in the process of securing a fund infusion of Rs 2,200 crore, there have been reports of certain investors becoming hesitant. However, the airline spokesperson has clarified that there are no funding delays and that they are progressing well with the fund infusion.The spokesperson also mentioned that additional announcements will be made by SpiceJet as they move forward with the next tranche, and the majority of investors have already subscribed.In 2019, SpiceJet reached its peak with a fleet of 118 planes and a workforce of 16,000 employees. Its closest competitor in terms of market share is Akasa Air, which has 3,500 employees and a fleet of 23 planes. Both airlines hold approximately 4% of the domestic market each.