Job Cuts At Spicejet: Airline To Layoff 1,400 Employees

SpiceJet will reportedly reduce its workforce by laying off 1,400 employees, which accounts for approximately 15 per cent of its total staff.

The decision to lay off is aimed at cutting costs and maintaining investor interest. "This is to ensure an alignment of companywide costs as against operational requirements," The Times Of India quoted a spokesperson as saying.

Currently, the cash-strapped low-cost airline employs around 9,000 individuals and operates a fleet of approximately 30 aircraft. Notably, eight of these planes are obtained through wet leases from foreign carriers, complete with their respective crew and pilots.

The reduction in the workforce is necessary because of Rs 60 crore salary bill, the daily reported citing people with knowledge of the matter.

"People have already started getting calls," the daily quoted one of them as saying over receiving a termination letter.

The report also claimed that the carrier has not been able to pay salary on time for several months and many are yet to receive January month salary.

SpiceJet has announced its ongoing efforts to secure a fund injection totalling Rs 2,200 crore. However, reports suggest that certain investors have become hesitant to proceed with the investment. "There aren't any funding delays and we are progressing well with our fund infusion and have already made our public announcements accordingly," the spokesperson claimed. "We will be making additional announcements as we progress on the next tranche. The majority number of investors have subscribed."