SpiceJet to Lay Off 1,400 Employees to Cut Costs 

SpiceJet, a budget airline based in India, is currently experiencing financial challenges. As a result, the company recently declared that it will be laying off 1,400 employees, which shows 15% of its current staff. This measure is planned to help minimize expenses and ensure the investors remain interested in the company.

SpiceJet, a leading Indian airline, currently employs 9,000 staff members and operates a fleet of 30 planes, 8 of which are from other airlines, along with their respective crew and pilots. The company has confirmed that it will be laying off some of its employees, citing the need to align its overall costs with its operational requirements.

According to sources familiar with the matter, SpiceJet’s high staff salary bill of ₹60 crore (approximately $7.5 million) has contributed significantly to the recent job cuts. The airline has already started terminating some employees, who have been informed of their dismissal via phone calls. Furthermore, the airline has been delaying salary payments for several months, with many employees yet to receive their January pay.

SpiceJet maintains that there are no funding delays and the infusion of ₹2,200 crore (about $275 million) is progressing well. However, some investors reportedly remain hesitant. The airline claims that “the majority number of investors have subscribed” and will make further announcements soon.

In 2019, SpiceJet had 118 planes and employed 16,000 people at its peak.

 Its main competitor, Akasa Air, currently has 3,500 employees for a fleet of 23 planes. Both airlines hold roughly 4% of the domestic market share.

This significant job cut reflects SpiceJet’s ongoing financial struggles and its attempt to secure investor confidence through cost-cutting measures. The impact on affected employees and the airline’s future remains to be seen.