Budget carrier SpiceJet plans to lay off 1400 employees as part of manpower rationalisation and save about Rs 100 crore annually.

The move, aimed at streamlining operations and slashing costs, comes amid ongoing legal battles and delays in fundraising, raising concerns about the airline’s future.

“As part of our turnaround and cost-cutting strategy, following the recent fund infusion, we have initiated several measures, including manpower rationalisation, aimed at achieving profitable growth,” a SpiceJet spokesperson said.

With a current workforce of approximately 9,000, SpiceJet is bracing for a 10-15 per cent reduction.

“A final decision on the quantum of layoffs is expected this week,” said an official familiar with the matter, hinting at potential job losses for up to 1,350 individuals across various departments.

The impetus for these layoffs, sources say, is the airline’s excess manpower compared with its operational fleet size.

SpiceJet currently operates only around 30 aircraft, excluding wet-leased planes, leading to a surplus of staff, particularly those stationed on discontinued regional connectivity scheme (RCS) routes.

“Relocating such people will be a challenge,” noted another official.

The grounding of the Boeing 737 MAX for almost two-and-a-half years till August 2021 due to flight safety issues made a severe dent in the operations of the airline.

Chairman and managing director Ajay Singh, emphasising the need for “judicious spending”, has prioritised fleet upgrades, on-time performance improvements and cost-cutting measures, including these planned layoffs, which are expected to save the airline up to Rs 100 crore annually.