According to the Economic Times, SpiceJet will lay off around 1,400 employees, cutting its workforce by around 15%.
The company’s decision to cut its workforce, which currently stands at 9,000, ensures it can cut costs wherever possible and thus retain investors’ interest.
The Economic Times sources said that SpiceJet’s salary bill has been scrutinised closely, and reducing it is essential.
For the airline, however, a decision to cut the workforce always seemed investible with the delaying of payments to employees for some time. Now, the Indian airline will look to make immediate changes to ensure stability in the long term.
Specific job roles being cut weren’t provided by the airline. However, this likely won’t include pilots but rather other departments. Ideally, the airline wants to grow again, not continue giving up market share to emerging and existing companies that it may struggle to get back in the future.
The most recent downsizing continues a trend seen at SpiceJet in the ever-growing but also competitive Indian market. This is the latest in its turnaround plan, which should see around USD 12 million or ₹100 crore saved annually.
SpiceJet’s fleet once totalled over 100 aircraft, with an employee base exceeding 10,000. However, following the pandemic, it has significantly downsized over recent years and faced new, emerging competition.
Fleet data shows SpiceJet now has 36 active aircraft, with 28 parked, bringing the total. As part of its currently active fleet, the airline predominantly flies the 737 series, which averages 13.1 years and includes 737-700s, 737-800s, 737- 900ERs, and the 737-8 from the MAX series.
Akasa Air, one of India’s newest entrants into the aviation market, has ambitious growth plans. While its fleet currently only includes 24 units, this is set to increase substantially, with the 737 MAX as a cornerstone.