Struggling budget airline SpiceJet has confirmed plans to lay off 1400 employees in a move the company is calling “manpower rationalization.” The decision is expected to save the airline around Rs 100 crore (approximately $12 million USD) annually.
The layoffs represent a significant portion of SpiceJet’s workforce and highlight the ongoing financial challenges facing the Indian aviation sector. The airline has been battling rising fuel costs, intense competition, and a weakening rupee, leading to mounting losses.
A SpiceJet spokesperson stated that the layoffs were a “difficult but necessary decision” to ensure the airline’s long-term viability. The company has announced that affected employees will receive severance packages and outplacement assistance.
Industry analysts see the layoffs as a sign of the continued pressure on India’s budget airlines. Low-cost carriers have been locked in a fierce price war, eroding profit margins and making it difficult for some airlines to survive.
The SpiceJet layoffs come just months after rival IndiGo, India’s largest airline, announced job cuts. The job losses in the aviation sector are a further blow to the Indian economy, which has been struggling with slowing growth and rising unemployment.
