layoff season extends into february as spicejet cisco and other prominent names announce job cuts
India’s cash-strapped budget airline SpiceJet has announced plans to lay off 1,400 employees or nearly 15% of its workforce, in an effort to cut expenses and retain investor interest, adding to the list of firms declaring job cuts recently, according to the Economic Times.
Spicejet currently has 9,000 employees and operates about 30 planes. Its nearest rival in terms of market share is Akasa Air, which has 3,500 employees for a fleet of 23 planes. The two prominent airlines have nearly 4% share each of the domestic market.
SpiceJet delaying salary payments for months
Confirming the job losses, a spokesperson said: “This is to ensure an alignment of companywide costs as against operational requirements.” The layoffs have become necessary because of the company’s $7.2 million salary bill, said people familiar with the matter.
Referring to the terminations, one person said employees at SpiceJet have already started getting calls. In fact, the airline has been delaying salary payments for several months, with a number of employees reported not to have received their January pay.
SpiceJet has said it’s in the process of getting a fund infusion of Rs 2,200 crore but some investors are said to have been hesitant. “There aren’t any funding delays and we are progressing well with our fund infusion,” the spokesperson added.
Other notable companies announcing job cuts
US-based communication tech firm Cisco is also one of the latest names to join the ongoing wave of job cuts. The company is preparing for a business restructuring that is likely to involve terminating thousands of employees, according to Reuters.
A source close to the publication said Cisco is still deciding on the exact number of employees to be laid off and the final announcement can be expected as early as this week, as the company prepares for an earnings call on February 14.
Some other firms joining the list in the recent past include San Francisco-based DocuSign, Seattle-based Amazon’s both Amazon Pharmacy and One Medical units, and popular spell- and grammar-checking tools Company Grammarly.