SpiceJet Plans Layoffs The airline aims to layoff almost 1,400 employees in an attempt to save INR 100 crore annually through cost-cutting measures, said reports
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Indian carrier SpiceJet will layoff 1,400 employees in an effort to cut costs and attract investors, according to media reports, this number includes 15 per cent of the airline's total workforce.
The airline has been delaying salary payments for several months and claims that many employees have not received their January pay, so layoffs are being done to align company wide costs against operational needs. "The airline has initiated several measures to cut costs that are likely to help it save INR 100 crore annually. As part of its turnaround and cost-cutting strategy, following the recent fund infusion, SpiceJet has initiated several measures, including manpower rationalization, aimed at achieving profitable growth and positioning ourselves to capitalize on the opportunities in the Indian aviation industry. Through this initiative alone, we anticipate an annual saving of up to INR 100 crore," the reports added.
The airline is trying to secure a fund infusion of INR 2,200 crore and the company is bullish about the infusion. SpiceJet currently employs 9,000 employees and operates approximately 30 aircraft, including eight wet-leased from foreign carriers.
Aviation regulator DGCA slapped a fine of INR 30 lakh on SpiceJet for lapses in rostering of pilots for operating flights in low visibility conditions.