• Source:JND
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Spicejet Layoff:  Indian low-cost carrier 'SpiceJet' will cut 1,400 jobs to lower operation costs, so that it can attract investors, a report said on Monday. The layoff figure represents 15 per cent of the airline's total workforce, and layoffs have already begun, the report added.

According to a report in the Economic Times (ET), the airline has been delaying payment of salaries for several months. Many employees did not get their salary for January. The Spicejet total wage bill is currently Rs 60 crore.

Therefore, layoffs are being executed to align company-wide costs against operating requirements. SpiceJet is eyeing a fund investment of Rs 2,200 crore, the funding plans are on track and an announcement will be made soon, the report said.

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Currently, around 9,000 employees are working with the airline. SpiceJet operates around 30 aircraft, Eight of these aircraft are leased with crew and pilots from international carriers. In 2019, when spiceJet was at its peak, the airline had 118 aircraft and 16,000 employees.

The Delhi High Court had last week asked the low-cost carrier to pay ₹50 crore within six weeks to former promoter Kalanidhi Maran and KAL Airways as part of the 2018 arbitration award.

Earlier, Raymach Technologies, in November, filed an insolvency petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against SpiceJet for default of ₹2.7 crore. The company said it has provided commercial consultancy and technical support services to the airline.

The airline's share price fell after the news broke. On Monday, during morning trade, shares of the company fell 3.8 per cent and were trading at Rs 65.59 apiece on the BSE.

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