Popular airline SpiceJet is set to cut 1,400 jobs to cut costs and attract investors. Which is about 15 percent of the company’s current workforce.
SpiceJet currently has 9,000 employees and operates around 30 aircraft.Out of these, eight aircraft are leased from foreign carriers, along with their respective crew and pilots.
It has been said that the organization needs a lot of money to meet its expenses, which is why the organization has decided to reduce cash expenditure.
It is also reported that the salary bill of 60 million dollars of the company is stuck.
SpiceJet has reportedly not been able to pay its employees regularly for the past few months. Many workers claimed that they have not yet received their January salaries.
“People have already started receiving termination calls,” remarked one of the sources, hinting at the ongoing job cuts.
SpiceJet has confirmed that it is in the process of securing a Rs 2200 crore fund allocation, but certain investors are reported to be hesitant.
“There aren’t any funding delays, and we are progressing well with our fund infusion. We will be making additional announcements as we progress on the next tranche. The majority number of investors have subscribed,” stated a company spokesperson, refuting rumors of funding setbacks.
At its pinnacle in 2019, SpiceJet boasted a fleet of 118 aircraft and a workforce of 16,000 employees.
Its closest competitor in terms of market share, Akasa Air, maintains a fleet of 23 planes with 3500 employees, each holding approximately 4 per cent of the domestic market share.
