SpiceJet to downsize workforce by 1,400 employees

In an effort to cut costs and regain investor trust, SpiceJet plans to reduce its workforce. Currently employing 9,000 individuals and operating about 30 aircraft, the airline aims to lay off 1,400 employees, which represents around 15 percent of its total workforce.

The airline, grappling with significant financial strain, has leased eight aircraft with their respective crew and pilots from foreign carriers.

The spokesperson emphasized that this move is intended to align the company’s expenses with its operational requirements. Sources familiar with the situation revealed that the airline’s salary expenses of Rs 60 crore necessitated the staff reduction.

Employees have been experiencing delays in salary payments for several months, with many still awaiting their January wages, as per sources cited in the report. Some have reportedly started receiving termination notices.

Last year, the budget carrier announced plans to raise over Rs 2,250 crore by issuing equity shares to various investors, including financial institutions and FIIs.

SpiceJet has been grappling with multiple challenges, including issues with aircraft lessors. Additionally, it faced legal disputes with Credit Suisse and its former owner, Kalanithi Maran, over unpaid dues last September.

As of 10:50 am, the airline’s shares were trading at Rs 65, down nearly 4 percent on the BSE.

You might also be interested in – Vedanta Resources pays bondholders $779 million upfront as part of restructuring