SpiceJet Faces Cash Crunch, To Cut 15% of Workforce Impacting 1,400 Employees
SpiceJet, grappling with financial difficulties, intends to terminate the employment of about 1,400 workers, constituting almost 15% of its existing staff. The objective of this action is to reduce costs and maintain the interest of investors in light of the airline's financial constraints.
SpiceJet, grappling with financial difficulties, intends to terminate the employment of about 1,400 workers, constituting almost 15% of its existing staff. The objective of this action is to reduce costs and maintain the interest of investors in light of the airline's financial constraints.
The Gurguram-based budget carrier confirmed the same to The Economic Times,
¡°This is to ensure an alignment of companywide costs as against operational requirements,¡± the statement quoted a SpiceJet spokesperson as saying.
BCCL
Reports Suggest That The Mounting Pressure On The Carrier Is Due To High Salaries.
Meanwhile, individuals familiar with the situation linked the layoffs at SpiceJet to the airline's salary expenditure of ?60 crore.
¡°People have already started getting calls (about being laid off),¡± a person said.
There Has Been A Delay in Salaries For ¡®Several Months¡¯ Now
The airline has been postponing salary payments for 'several months,' and numerous employees have not received their salaries for January.
What Is The Current Status Of SpiceJet¡¯s Employee Strength And Fleet?
Spicejet domestic passengers 2023/The Print
With 30 planes in its fleet, the airline has over 9000 employees on payroll presently. Before the pandemic, the carrier had over 16,000 employees and 118 planes.
Currently, the budget carrier holds a market share of approximately 4%, with its closest competitor in this regard being Akasa Air, boasting a workforce of 3,500 and a fleet of 23 planes.
Info About SpiceJet
SpiceJet is an Indian low-cost airline headquartered in Gurgaon, Haryana, India. It is the fourth-largest airline in the country by the number of domestic passengers carried. SpiceJet operates a fleet of Boeing and Bombardier aircraft, serving both domestic and international destinations. The airline is known for its budget-friendly fares and has played a significant role in making air travel more accessible to a broader segment of the Indian population. SpiceJet was founded in 2004 and has since been a key player in the Indian aviation industry.
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Bhavya Sadhwani heads Indiatimes OTT section - Binge. She calls herself an entertainment ninja and OTT content sucker. She loves to write on web series, movies, documentaries, reality shows and everything else that releases on digital platforms. She forms a special bond with those who share her love for cringe content.
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