Budget airline SpiceJet has started reducing its workforce as it struggles with a shrinking fleet, rising dues, and continued salary delays. The move signals growing financial pressure and an urgent need for fresh capital, according to media reports.
Staff Cuts and Operational Shrinkage
Company insiders cited by The Economic Times said the airline has moved from operating around 50 aircraft to a much smaller fleet today, forcing manpower reductions. Around 20% of employees could eventually be affected.
In the first phase, more than 500 staff members are expected to be placed on furlough or unpaid leave. SpiceJet currently employs about 6,800 people but operates only a limited number of owned and leased aircraft.
Furlough Plan and Employee Concerns
A letter from the airline’s HR department reportedly informed employees about a six-month furlough period from April to September 2026, citing reduced operational capacity and cost-cutting needs.
However, employees say unpaid leave is difficult to manage due to financial commitments and personal hardships, with many already dealing with long salary delays.
Engineers Exit and Notice Period Waivers
The restructuring has also affected engineers. Dozens of employees who had resigned were reportedly told on March 31 that their notice period was waived, making it their last working day.
This has impacted workers moving to other airlines, including Air India and Akasa Air, leaving some without expected pay during the transition.
Salary Delays and Morale Issues
Salary payments have reportedly been delayed by up to three months in some cases. As of April, several employees were still awaiting January salaries, further impacting morale across departments.
Pilot Contract Changes and Pay Impact
Revised contracts for Q400 pilots introduce a new roster system aimed at improving work-life balance. However, pilots estimate this could reduce monthly earnings by around 20%.
Rising Liabilities and Financial Pressure
The airline is also facing mounting financial obligations, including statutory dues such as GST, provident fund, and TDS. Total liabilities are estimated at over ₹4,500 crore, with pending dues reportedly exceeding ₹100 crore.
Despite raising significant funds in 2024, the airline continues to face severe cash flow challenges.
