SpiceJet to cut around 1400 jobs amidst a cash crunch

Amid a cash crunch and with an eye on attracting investors, SpiceJet is set to cut 1,400 jobs, representing 15% of its 9,000 workforce, aiming to save 1 billion rupees ($12 million) annually.

The airline, operating 30 planes has officially confirmed the workforce reduction.

SpiceJet Layoffs 2024: Reason

According to ET report, the decision aims to realign companywide costs with operational requirements, addressing the airline's 60 crore rupees salary bill.

Reports further says that SpiceJet has been delaying for several months, with many employees yet to receive their January pay. In an effort to stabilize its financial situation, the low-cost carrier is actively seeking a fund infusion of 2,200 crore rupees.

SpiceJet gets over Rs 900 cr funding

With more than Rs 900 crore funding coming in the last month, SpiceJet had said that it will focus on upgradation of its fleet and cost-cutting measures, as the no-frills airline works on ways to come out of turbulent times.

In an internal note to the senior staff, the airline said it now has a substantial bank balance of more than Rs 900 crore, including Rs 160 crore received as an instalment under the government's Emergency Credit Line Guarantee Scheme (ECLGS).

The carrier, which had been facing multiple headwinds in recent months, has so far received around Rs 1,000 crore under the ECLGS.

The latest instalment came recently after its Chairman and Managing Director Ajay Singh infused funds into the airline, according to an official in the know.

Singh, who has been helming the no-frills carrier, has so far put in Rs 200 crore out of the Rs 500 crore fund infusion that he had announced last year.

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