Budget carrier SpiceJet is in the process of laying off nearly 15%, or about 1,500 of its employees to cut costs following a reduction in its fleet size by two-thirds. The cash-strapped airline expects to save around 100 crore per year from this exercise.
"As part of our turnaround and cost-cutting strategy, following the recent fund infusion, SpiceJet has initiated several measures, including manpower rationalization, aimed at achieving profitable growth and positioning ourselves to capitalize on the opportunities in the Indian aviation industry," said a spokesperson for SpiceJet.
"Through this initiative alone, we anticipate an annual saving of up to ₹100 crore." The Gurugram-based SpiceJet recently raised 744 crore by allotting shares and warrants on a preferential basis.
Last month, the low-cost airline received an in-principle approval from BSE to raise ₹2,242 crore by issuing shares.
"The new investors who have come on board do not want to pay free salaries," said a person familiar with the developments at SpiceJet, adding that pilots are unlikely to be affected in the layoffs.
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