SpiceJet Looking To Layoff 1,000 Employees To Reduce Costs: Report

The news report cited an anonymous official and said that the carrier is planning to reduce its manpower by 10 to 15 per cent and expects to bring about annual savings to the tune of Rs 100 crore

Earlier last month, SpiceJet Chairman and MD, Ajay Singh, stressed the need for judicious spending and informed that he would personally supervise all major expenses.

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SpiceJet is reportedly looking to layoff at least 1,000 employees soon in an attempt to majorly slash costs and streamline operations as the airline manages its financial woes. The cash-strapped carrier is facing multiple legal challenges and other issues, and is planning to slash its workforce as the ratio of manpower to aircraft is not balanced, officials revealed on Monday. 

The final decision on cutting the jobs is expected to be taken this week, reported PTI citing some people familiar with the issue. Currently, the airline employs about 9,000 people. The news report cited an anonymous official and said that the carrier is planning to reduce its manpower by 10 to 15 per cent, in an effort to lower the overall operational costs. The move is expected to bring about annual savings to the tune of Rs 100 crore. 

“A reduction of 15 per cent would mean around 1,350 people will lose their jobs. Layoffs are expected across departments and the final list is being prepared. People from the management and consultancy are working on chalking out the contours of letting staff leave, and all the departments have been asked to give their inputs,” the report stated citing another official, who wished to remain anonymous. 

Notably, the report mentioned that SpiceJet didn’t give any official comment regarding the matter. The official further explained that the carrier stopped operation on selected RCS (Regional Connectivity Scheme) routes and such destinations employed abundant manpower, especially those with salaries in the lower range. “Relocating such people will be a challenge,” the official stated. 

Notably, the airline currently operates a fleet of around 30 aircraft, in addition to the 10 planes it has on lease. Earlier last month, SpiceJet Chairman and MD, Ajay Singh, stressed the need for judicious spending and informed that he would personally supervise all major expenses. Addressing a meeting with the senior officials, Singh stated that the airline would focus on upgrading the fleet and increasing its performance.