SpiceJet to let go of 1,400 employees to meet cash crunch
SpiceJet has reportedly been delaying salary payments for several months. Many, the report claims, haven't yet got their January pay. The low-cost carrier is eyeing a fund infusion of ₹2,200 crore.
- Feb 12, 2024,
- Updated Feb 12, 2024 8:25 AM IST
SpiceJet is reportedly laying off 1,400 employees, about 15% of its workforce, to meet a cash crunch and attract investor interest.
The airline currently has 9,000 employees and operates about 30 planes. Of these, eight are wet-leased from foreign carriers, along with crew and pilots. The budget carrier has reportedly confirmed the cuts.
The move, according to an ET report, is being done to align companywide costs against operational needs. The airline has a ₹60 crore salary bill, the report added.
SpiceJet has reportedly been delaying salary payments for several months. Many, the report claims, haven't yet got their January pay. The low-cost carrier is eyeing a fund infusion of ₹2,200 crore.
The airline said the funding plans are on track and an announcement is expected soon. At its peak in 2019, SpiceJet had a fleet of 118 planes and 16,000 employees. Its nearest rival in terms of market share is Akasa Air, which has 3,500 employees for a fleet of 23 planes. The airline stock was down 3% at Rs 68.18.
SpiceJet is reportedly laying off 1,400 employees, about 15% of its workforce, to meet a cash crunch and attract investor interest.
The airline currently has 9,000 employees and operates about 30 planes. Of these, eight are wet-leased from foreign carriers, along with crew and pilots. The budget carrier has reportedly confirmed the cuts.
The move, according to an ET report, is being done to align companywide costs against operational needs. The airline has a ₹60 crore salary bill, the report added.
SpiceJet has reportedly been delaying salary payments for several months. Many, the report claims, haven't yet got their January pay. The low-cost carrier is eyeing a fund infusion of ₹2,200 crore.
The airline said the funding plans are on track and an announcement is expected soon. At its peak in 2019, SpiceJet had a fleet of 118 planes and 16,000 employees. Its nearest rival in terms of market share is Akasa Air, which has 3,500 employees for a fleet of 23 planes. The airline stock was down 3% at Rs 68.18.