In recent news, Indian low cost airline SpiceJet has planned to lay off about 15 percent of its workforce under “cost cutting strategy.” Meaning, about 1400 employees of the company will be laid off by the month of March.
The turnaround plan was confirmed SpiceJet on Monday. The airline stated that with this move, the company will be able to save up to Rs 100 crore annually.
It is noteworthy mentioning that currently, SpiceJet operates with a workforce of about 9,000 employees. While the airline has not officially confirmed the number of employees to be laid off, reports suggest it to be around 1400.
An official from the airline stated that SpiceJet operates about 32 airplanes and another 10 on wet-lease. These 10 have come along with pilots and cabin crew.
As per the available information, prior to Covid, the airline had a fleet of 120 aircraft.
Meanwhile, it is important to mention that this lay off by SpiceJet will be limited to non-operational staff only. Meaning, pilots and cabin crew will not be included.
This decision comes as the crisis-hit-SpiceJet plans to reduce costs significantly and also streamline operations of its reduced aircraft fleet. After facing several financial and legal troubles the airline is likely to lay off its employees because of availability of more manpower than the number of operational flights. A final decision on the same is yet to be announced.
As of now, SpiceJet will be paying more attention to fleet upgrades, better on-time performance, and cost-cutting measures for smooth functioning.
Earlier on January 26, the company raised Rs 744 crore as a part of the Rs 2250 crore by selling shares and warrants.
Further information into this matter is awaited.