Are 1,400 employees going to be laid off in SpiceJet? Know what airline said

SpiceJet, a financially struggling low-cost airline, plans to fire 1,400 workers to reduce expenses and maintain investor interest. At the moment, the airline employs 9,000 people and runs about 30 aircraft. Along with crew and pilots, eight of these are on wet lease from foreign carriers. SpiceJet has verified the layoffs. The airline released a statement saying, "This decision has been taken keeping in mind the operational requirements to reduce the company's costs."

According to a person with knowledge of the situation, it was necessary to cut staff due to the Rs 60 crore salary bill.

Referring to the layoffs, another person said, "People have already started getting calls. SpiceJet has been delaying salary payments for several months. Many people have not yet received their January salaries. SpiceJet has It has said that it is in the process of raising funds of Rs 2,200 crore. However, experts believe that some investors have not shown interest in it. However, the airline spokesperson said, "There is no delay in funding and we are progressing well with their fundraising and have already made their public announcements. “We will make additional announcements for the next tranche. Most of the investors have shown interest in it.

When SpiceJet was at its peak in 2019, the airline had a fleet of 118 aircraft and 16,000 employees. Its nearest competitor in terms of market share is Akasa Air, which has a fleet of 23 aircraft and 3,500 employees. They have about a 4% share in the domestic market.