SpiceJet announces major job cuts amid financial crisis, to lay off 1,400 employees

Monday, February 12, 2024

Facing financial difficulties, SpiceJet plans to terminate approximately 1,400 employees, which constitutes about 15% of its current workforce. This decision is part of the airline’s strategy to reduce expenses and maintain attractiveness to investors.

Back in 2019, at its height of operations, SpiceJet operated 118 aircraft and employed 16,000 staff.

The company, based in Gurugram and known for its budget-friendly flights, confirmed the workforce reduction to The Economic Times.

In an effort to adjust the company’s expenses in line with operational needs, a SpiceJet representative stated, “This is to ensure an alignment of companywide costs as against operational requirements.”

Sources familiar with the matter pointed out that the job cuts are a consequence of SpiceJet’s substantial salary expenditures, which amount to ₹60 crore.

Reports have emerged that individuals have begun receiving notifications regarding their termination.

For some time, the airline has been postponing salary disbursements; a number of employees have not received their wages for January.

SpiceJet has communicated to ET that it is securing a financial boost of ₹2200 crore. Despite this, some investors have shown reluctance.

Currently, the airline employs 9,000 individuals and manages a fleet of 30 aircraft. In contrast, during its zenith in 2019, the company boasted 16,000 employees and operated 118 aircraft.

Currently, the low-cost airline holds approximately a 4% market share. Its closest competitor in this respect is Akasa Air, which employs a workforce of 3,500 and operates 23 aircraft.

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