SpiceJet announces workforce reduction of 15% amid cost realignment

SpiceJet, in a move to address financial challenges and uphold investor interests, has unveiled plans to trim its workforce by around 15%, equivalent to 1,400 jobs, according to Economic Times. The airline, currently employing 9,000 staff and operating a fleet of 30 aircraft, including eight planes on wet lease with their crews and pilots, aims to realign operational expenses with company objectives through these layoffs.

Acknowledging the impending job cuts, a company spokesperson stated, “This is to ensure alignment of company-wide costs as against operational requirements,” as reported by Economic Times. The decision stems from the airline’s significant monthly wage expenditure of Rs 60 crore.

Employees have reportedly been notified about terminations, with salary delays in January exacerbating the situation. SpiceJet, actively seeking financial reinforcement with plans to secure Rs 2,200 crore, refuted claims of funding delays. The spokesperson clarified, “there aren’t any funding delays, and we are progressing well with our fund infusion.”

In 2019, SpiceJet reached its peak with 118 aircraft and 16,000 employees, currently sharing a nearly equal market share with Akasa Air. Both airlines, each holding about 4% of the domestic aviation market, are at the forefront with their workforce adjustments.

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