SpiceJet to cut at least 1,000 jobs to ensure profitable growth
Feb 13, 2024
New Delhi [India], February 13 : Low-cost airline SpiceJet is set to lay off at least 1,000 employees as part of its ways and means to save costs, and aiming to save about Rs 100 crore on an annual basis.
A spokesperson of the airline SpiceJet confirmed on Tuesday that the manpower rationalization was part of its cost-cutting strategy to ensure profitable growth.
"As part of our 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," the spokesperson said.
Through this initiative alone, the spokesperson said they anticipate an annual saving of up to Rs 100 crore.
The airline, which was launched in 2005, currently has around 9,000 employees and 30 planes,10 of which are wet-leased. In the pre-pandemic year 2019, the airline had a fleet of 118 planes and more than 15,000 employees.
"The decision over jobs cut was taken after the fleet size has been reduced and excess workforce. There is no exact figure regarding job cuts, but all verticals have been asked for initiating manpower rationalization," said a person in the airline.
About a fortnight ago, promoter Ajay Singh-led airline SpiceJet completed raising the first tranche of capital infusion worth Rs 744 crore through the allotment of securities on a preferential basis.
It reportedly plans a Rs 22.50 billion fundraising effort by selling shares and warrants.
SpiceJet, which has been facing multiple headwinds, said in a media statement then, that the raised funds are expected to play a pivotal role in financing operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements.
The fund infusion will open new avenues for SpiceJet, resulting in a more cash-efficient operation, and expanded fleet and network, Singh had said.
Meanwhile, SpiceJet reduced its net loss to Rs 428 crore in Q2 FY2024, a significant improvement from the net loss of Rs 835 crore in Q2 FY2023.
SpiceJet operates about 250 daily flights to 48 destinations within India and to international destinations. Its fleet is a mix of aircraft, including the Boeing 737 Max, Boeing 700 and Q400s.
