SpiceJet to lay off 1400 employees to Cut Costs

New Delhi: Cash-strapped SpiceJet is planning to lay off around 1400 of its employees to reduce expenditure and to retain investor interest.

In a statement to The Economic Times, the budget carrier confirmed the job cuts. At present, the Spicejet airline has 9000 employees and operates 30 planes. In 2019, it had 16,000 employees and 118 planes.

Through layoffs, Spicejet wants to reduce its salary bill worth around Rs 60 crore.

“This is to ensure an alignment of companywide costs as against operational requirements,” the statement quoted a SpiceJet spokesperson as saying.

The salary payments of the airline are delayed and many employees are yet to be paid for January.

Currently, Spicejet has a market share of around 4%, with its nearest rival on this front being Akasa Air, which as a 3500-strong staff and 23 planes.