✈️SpiceJet in Turbulence: 15% Workforce 🛩 CUT in Cost-Saving Measures
Spicejet Boeing 737-900ER in for maintenance in Hanger 6 at Dublin Airport.
SpiceJet, a major private carrier in India, has announced plans to lay off 1,400 employees, constituting 15% of its workforce, as part of a broader turnaround and cost-cutting strategy aimed at securing investor interests and achieving profitability. The decision comes amidst ongoing challenges in the aviation industry, with SpiceJet facing pressures exacerbated by the COVID-19 pandemic. The airline’s shares experienced a 4% decline following the announcement, with company officials highlighting anticipated annual savings of up to Rs 100 crore through the initiative.
With 9,000 employees and a fleet of approximately 30 planes, including eight wet-leased from foreign carriers, SpiceJet’s Chairman and Managing Director Ajay Singh emphasized the importance of prudent spending and oversight of major expenditures in a recent meeting. The airline is prioritizing fleet upgrades, on-time performance improvements, and operational streamlining as part of its restructuring efforts.
Despite securing initial funds and accessing government support through schemes like the Emergency Credit Line Guarantee Scheme (ECLGS), SpiceJet remains focused on fundraising endeavors, with Singh pledging personal investments to bolster the company’s financial position.
