Due to lack of funds, about 1400 workers, or almost 15% of its current workforce, will be let go by SpiceJet in an effort to reduce expenses and maintain investor interest.
A SpiceJet spokesperson was cited in the statement as explaining that this is being done to guarantee that overall company costs are in line with operational needs.
In the meantime, those who were informed of the developments blamed SpiceJet’s ₹60 crore salary bill for the layoffs.
One person stated that calls regarding layoffs have already begun to arrive.
Many employees have not received their January salary yet because the airline has been delaying payment for “several months.”
SpiceJet was in the process of receiving ₹2200 crore in funding; nonetheless, it added that certain investors
“We are proceeding smoothly with our fund infusion and there are no delays in funding; additionally, we have already made the appropriate public announcements. As work on the next tranche advances, more announcements will be made”. According to the spokesperson, the majority of investors have subscribed.
Employee strength and fleet
The airline currently employs thirty planes and serves nine thousand people. However, in 2019, it employed 16,000 people and operated 118 planes at its height.
With 23 aircraft and a workforce of 3,500, Akasa Air is currently the budget carrier’s closest competitor, holding a 4% market share.