SpiceJet is planning to lay off 15% of its workforce to cut costs. The turnaround plan balances company-wide costs with operations.
According to media reports, low-cost carrier SpiceJet would lay off 1,400 employees, or 15% of its workforce, to cut costs.
SpiceJet has taken various initiatives, including labor rationalization, to expand profitably and capitalize on the Indian aviation business after its recent funding. The SpiceJet spokeswoman estimated a Rs 100 crore annual savings from this technique.
The move seeks to retain investors and match corporate expenses to operations. SpiceJet has 9,000 employees and 30 jets.
According to insiders, the airline’s Rs 60 crore pay spending caused the staff cut. Some workers received termination notices.
Many SpiceJet employees are still waiting for January wages after months of delays.
Investors are apprehensive of the airline’s Rs 2,200 crore request.
SpiceJet is planning to lay off 1,400 employees, 15%, to cut costs. The move is part of a recovery strategy after a funding infusion to boost profits and capitalize on Indian aviation. The airline operates with 30 planes and 9,000 employees. The move followed Rs 60 crore in salary spending.