SpiceJet to layoff 15% of its workforce in cost- cutting measure

SpiceJet, the airline service, is planning to lay off at least 1,000 employees in the coming days as part of its efforts to significantly reduce costs and optimize its aircraft fleet operations, according to recent media reports.

With approximately 9,000 employees currently, SpiceJet aims to downsize its workforce by 10-15%. This reduction is expected to yield annual savings of up to Rs 100 crore, the reports indicate. A 15% reduction would translate to approximately 1,350 job losses.

The layoffs are anticipated to affect various departments, with management and consultancy teams collaborating to structure the staff reduction process.

SpiceJet's decision stems partly from its cessation of operations on certain Regional Connectivity Scheme (RCS) routes, resulting in surplus manpower at affected stations, particularly among lower-salaried staff. Relocating these employees poses a significant challenge, as highlighted in the reports.

As of now, SpiceJet operates a fleet of slightly over 30 aircraft, in addition to 10 planes on wet lease. The airline, led by Ajay Singh, is currently engaged in fundraising efforts from diverse investors.

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