SpiceJet plans to lay off over 1,000 employees
Crisis-hit SpiceJet plans to give pink slips to at least 1,000 employees in the coming days as the airline works to reduce costs and streamline operations of its depleted aircraft fleet, officials said on Monday, February 12. Is.
Facing financial crunch, legal battles and other hurdles, the no-frills carrier may ask more employees to leave because it now has excess manpower compared to the number of planes in service. An official close to the matter said a final decision on the quantum of layoffs is expected this week.
When contacted, a SpiceJet spokesperson said the airline has initiated several measures, including manpower rationalization, to achieve profitable growth, but did not divulge any numbers.
The airline has around 9,000 employees and is now looking to reduce the workforce by 10-15 per cent, the official said, adding the layoffs are necessary to reduce overall costs and the annual savings could be up to Rs 100 crore.
A 15 percent cut would mean about 1,350 people would lose their jobs.
Another official with knowledge of the matter said that there is a possibility of layoffs in all departments and the final list is being prepared. The official said, people from management and consultancy are working on preparing a framework for furloughing the employees and all departments have been asked to give their inputs.
There has been no official comment from SpiceJet on the proposed job cuts.
The second official said the airline has closed operations on some RCS (regional connectivity scheme) routes and there is excess manpower at those stations, especially low-paid staff. The official said that shifting such people would be a challenge.
Currently, SpiceJet has a fleet of over 30 aircraft besides 10 aircraft on wet lease.