SpiceJet Announces Layoffs of 1400 Employees to Save Approximately Rs 100 Crore Annually

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In a bid to streamline operations and curb costs, budget carrier SpiceJet has announced plans to lay off 1400 employees, a move aimed at saving approximately Rs 100 crore annually.

The decision to downsize the workforce comes amidst ongoing legal battles and delays in fundraising, raising concerns about the airline's future. A spokesperson for SpiceJet highlighted the layoffs as part of a broader turnaround strategy following recent fund infusion, emphasizing the need for profitable growth.

With a current workforce of around 9,000 employees, SpiceJet is preparing for a reduction of 10-15%, potentially affecting up to 1,350 individuals across various departments. A final decision on the extent of layoffs is expected imminently.

Sources attribute the impetus for these layoffs to the airline's surplus manpower relative to its operational fleet size. Currently operating approximately 30 aircraft, excluding wet-leased planes, SpiceJet faces an excess of staff, particularly those assigned to discontinued regional connectivity scheme (RCS) routes. The challenge of relocating affected employees is acknowledged by officials.

The prolonged grounding of the Boeing 737 MAX until August 2021 due to flight safety concerns significantly impacted the airline's operations, contributing to the need for cost-saving measures.

Chairman and managing director Ajay Singh has underscored the importance of judicious spending, prioritizing fleet upgrades, on-time performance enhancements, and cost-cutting initiatives. These planned layoffs are expected to play a significant role in achieving cost efficiencies, potentially saving the airline up to Rs 100 crore annually.


Disclaimer: This is a generally available information, we have just collected the same for the general awareness. 

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