In line with its turnaround strategy and efforts to streamline operations, cash-strapped SpiceJet has announced a series of measures aimed at achieving profitability and capitalising on market opportunities.
A spokesperson for SpiceJet on Tuesday said that the airline has initiated a manpower rationalisation process as part of its cost-cutting strategy, following a recent fund infusion. The objective is to optimise resources and enhance operational efficiency.
On Monday it was reported in several media platforms that the airline is reportedly planning to lay off nearly 1,000 employees. The move is part of a broader effort to streamline operations and reduce costs. The decision comes amid ongoing legal battles and other operational issues faced by the airline. Officials on Monday said that SpiceJet is looking to bring its workforce in line with its aircraft capacity, which currently appears imbalanced.
The final verdict on the job cuts is anticipated to be made this week, as per reports from PTI, drawing on insights from sources close to the situation. Currently, SpiceJet employs around 9,000 employees. The airline aims to slash its workforce by 10 to 15 per cent to mitigate operational expenses. This reduction is expected to yield annual savings of about Rs 100 crore.
Management and consulting teams are reportedly collaborating to devise strategies for staff reduction, with input sought from all departments. The impending job cuts signify SpiceJet's concerted efforts to navigate its financial challenges and optimise operational efficiency.
The spokesperson said these strategic initiatives are expected to yield substantial savings, with anticipated annual cost reductions of up to Rs 100 crore. This move underscores SpiceJet's commitment to sustainable growth and financial stability amidst the evolving landscape of the aviation industry in India. The airline's proactive approach to addressing operational challenges and aligning its resources with market demands reflects its determination to emerge stronger and more competitive in the dynamic aviation sector.
According to the SpiceJet spokesperson, the airline remains focused on delivering quality services to its passengers while navigating through economic uncertainties and industry dynamics, positioning itself for long-term success and growth.