India’s SpiceJet plans to cut 1,400 jobs, which accounts for about 15pc of its workforce, by the end of March to reduce payroll expenses.
The job cuts are part of a turnaround and cost-cutting strategy aimed at achieving profitable growth and capitalizing on opportunities in the Indian aviation industry.
SpiceJet, which currently employs around 9,000 people, has reportedly delayed some salary payments and has started notifying employees who will be terminated.
The workforce reductions coincide with SpiceJet’s INR22.5 billion capital raising effort, intended to reduce liabilities, fund growth, and strengthen the airline’s balance sheet. Despite speculation that one of the major investors may be having second thoughts, SpiceJet denies any funding delays and assures progress on the fund infusion.
