News Karnataka
Thursday, February 29 2024
Business

SpiceJet to Cut 1,400 Jobs, Retain Investor Interest

Spicejet
Photo Credit : File photo

New Delhi: Gurugram-based budget airline SpiceJet has confirmed job cuts in a bid to realign companywide costs with operational requirements, as stated in a statement to The Economic Times.

The airline cited the need for layoffs due to its significant salary bill, which amounts to ₹60 crore. Individuals familiar with the situation disclosed that some employees have already received notifications about their impending layoffs, highlighting the urgency of the cost-cutting measures.

SpiceJet has faced challenges with salary payments, with many employees yet to receive compensation for January and several months of delayed payments prior. However, SpiceJet assured that it is currently in the process of securing a fund infusion of ₹2200 crore. Despite some investors expressing hesitancy, SpiceJet emphasized that there are no funding delays, and progress is underway for additional funding tranches.

Currently, SpiceJet employs around 9000 individuals and operates a fleet of 30 aircraft. This marks a significant decrease from its peak in 2019 when the airline boasted a workforce of 16,000 employees and operated 118 aircraft.

In terms of market share, SpiceJet holds approximately 4%, with its closest competitor being Akasa Air, which has a staff strength of 3500 and operates 23 aircraft.

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