(*15*)
Low-cost service SpiceJet is ready to lay off 1,400 staff, accounting for roughly 15 per cent of its workforce, as half of efforts to minimize operational prices, in accordance to a media report.
“As part of our turnaround and cost-cutting strategy, following the recent fund infusion, SpiceJet has initiated several measures, including manpower rationalisation, aimed at achieving profitable growth and positioning ourselves to capitalise on the opportunities in the Indian aviation industry. Through this initiative alone, we anticipate an annual saving of up to Rs 100 crore,” stated a SpiceJet spokesperson.
The transfer is aimed toward retaining the curiosity of its buyers and aligning company-wide bills with operational wants. Currently, SpiceJet operates with round 9,000 staff and maintains a fleet of roughly 30 planes.
The resolution to cut back employees is available in response to the airline’s vital Rs 60 crore wage expenditure, in accordance to sources acquainted with the matter cited within the report. Some staff have already begun receiving termination notices.
SpiceJet has been fighting delayed wage funds for a number of months, with many staff nonetheless awaiting their January wages.
The airline is reportedly within the course of of securing a Rs 2,200 crore fund allocation, however sure buyers stay hesitant.
In 2019, SpiceJet operated a fleet of 118 plane and had a workforce of 16,000 staff. In comparability, its closest competitor in market share, Akasa Air, operates a fleet of 23 planes with 3,500 staff, holding roughly 4 per cent of the home market share.
(With PTI inputs)
READ MORE:Â Retail inflation eases to 3-month low of 5.1 laptop in January 2024: Govt information
