Budget airline Spicejet plans to lay off 1,400 employees, or 15% of its workforce, to save costs. economic times Report. The report quoted people familiar with the matter as saying that the layoffs have become necessary due to Spicejet’s salary bill of 600 million rupees.
“People are already starting to get calls (for layoffs),” according to a person familiar with the matter. ET Report.
The decision to downsize has been confirmed by SpiceJet officials. A Spicejet spokesman said the job cuts were to ensure company-wide costs were aligned with operational needs.
The airline, which currently operates about 30 aircraft, eight of which are wet-leased from foreign airlines, has deferred salary payments for several months.
Spicejet is raising Rs 2,200 crore and the capital infusion process is underway.
The spokesman said there had been no funding delays, the company’s capital injection was progressing smoothly and announcements had been made accordingly. “We will make more announcements as the next phase progresses. Most investors have already subscribed,” the spokesperson said.
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