SpiceJet shares fell 4 percent on February 12 following reports that the low-cost airline would cut down the workforce by 10-15 percent to reduce fixed costs. The job-cuts will help the airline save around Rs 100 crore, CNBC TV18 reported, citing unidentified sources.
SpiceJet has lined up more cost-saving measures to stay afloat in the coming months.
The Economic Times reported that approximately 1,400 SpiceJet employees are to be laid off. These layoffs are essential for aligning companywide costs with operational requirements, according to the report. The cash-strapped airline currently has 9,000-9,500 employees and bears a salary bill of Rs 60 crore.
SpiceJet shares were trading 3.93 percent down at Rs 65.5 at 11.51 am on the National Stock Exchange. The shares have gained 94 percent in the last six months and 86 percent in the last one year.
The airline currently operates 30 aircraft, 10 of which are wet-leased. The picture is very different as compared to 2019 where SpiceJet had a fleet of 118 planes and 16,000 employees.
The airline has been directed by the Delhi High Court to settle the outstanding dues amounting to $4 million it owed two engine lessors, by February 15. Failure to comply with the court's directive could result in adverse legal action, with the lessors expressing their intention to pursue litigation against the airline.
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