SpiceJet, one of India’s leading budget airlines, grapples with financial turbulence as the aviation sector continues to face challenges.
Following closely on the heels of Go First’s recent financial woes, SpiceJet finds itself in dire straits, unable to meet its financial obligations, leading to potential layoffs affecting 1400 employees.
Cash Crunch Plagues SpiceJet:
The airline, already grappling with financial constraints, now faces the grim reality of trimming its workforce to mitigate operational costs.
Struggling with a severe cash crunch, SpiceJet has opted to reduce its employee count by 15%, amounting to approximately 1400 job cuts.
Currently operating 30 flights, with 8 aircraft on lease, SpiceJet’s workforce stands at 9000 employees, a significant reduction from its 2019 workforce of 16000 employees and 118 planes.
Salary Woes Amplify Crisis:
Employees of SpiceJet have been enduring delayed salary payments for several months, exacerbating the financial strain.
Many employees are yet to receive their January salaries, further exacerbating the situation.
With a pending capital infusion of Rs 2200 crore from investors, SpiceJet faces mounting pressure to streamline costs to appease stakeholders.
The company grapples with a staggering salary bill of Rs 60 crore, prompting considerations for significant workforce reductions to alleviate financial burdens.
SpiceJet’s plight underscores the ongoing challenges within India’s aviation industry, where airlines strive to navigate through turbulent financial waters amidst economic uncertainties.