SpiceJet may make an important decision to save expenses, more than 1000 employees may be laid off

Spicejet Layoffs: The financial condition of SpiceJet has worsened. In such a situation, the airline is planning to lay off at least 1000 employees to improve its financial condition. At present, there has been no formal announcement from the airline. SpiceJet chairman Ajay Singh said last month that he would personally oversee all major expenses.

Feb 12, 2024 - 14:32
SpiceJet may make an important decision to save expenses, more than 1000 employees may be laid off

SpiceJet's financial situation has gotten worse. The airline plans to let go of at least 1,000 workers in such a scenario. The airline is attempting to lower expenses and simplify fleet management.

SpiceJet is struggling with debt, legal issues, and other issues. The airline currently has more employees than aircraft in such a scenario. As a result, the business may decide to implement layoffs. A final determination on the extent of layoffs is anticipated this week, according to a person with knowledge of the situation.

According to SpiceJet officials, the airline has around 9,000 employees and is now considering reducing the workforce by 10-15 per cent. The airline is making layoffs to reduce overall costs. With this retrenchment, the company can save up to Rs 100 crore.

A 15 per cent cut means about 1,350 people will lose their jobs.

SpiceJet officials said that there is a possibility of layoffs in all departments. The airline is preparing the final list. We are working on preparing a plan to give leave to management and consultancy employees. Apart from this, he has asked all the departments to give their input.

SpiceJet has not yet released an official statement on the layoffs.

More than thirty aircraft are currently in SpiceJet's fleet, in addition to ten that are leased wet. SpiceJet Chairman and Managing Director Ajay Singh emphasised the value of frugal spending during a meeting with senior airline executives last month. He also promised to personally oversee all significant expenses.

Currently led by Ajay Singh, SpiceJet has experienced multiple ownership transitions since its founding and is currently seeking capital from potential investors. On January 26, the airline announced that it had raised Rs 744 crore.

Under the government's Emergency Credit Line Guarantee Scheme (ECLGS), the airline has also received approximately Rs 1,000 crore in funding, and Singh has pledged to contribute an additional Rs 500 crore. Due to non-payment of dues, lessors have been known to use legal action to reclaim their leased aircraft, as reported by SpiceJet.

India's domestic air traffic is increasing, making it one of the world's fastest-growing civil aviation markets. But SpiceJet has been having trouble for a while. The airline carried 83.90 lakh passengers in 2023 and held a 5.5% share of the domestic market.

Muskan Kumawat Journalist & Content Writer