SpiceJet Begins Workforce Reduction Amid Deepening Financial Crisis

SpiceJet has initiated workforce reductions as its financial challenges intensify, with over 500 employees expected to be impacted in the first phase. The airline, which once operated around 50 aircraft, is now running a significantly smaller fleet of about 13 owned planes along with 14 wet-leased aircraft that come with their own crew.
Facing mounting liabilities and reduced operations, the company has turned to furloughs and leave without pay as cost-cutting measures. According to internal communication from the HR department dated 31 March, several employees will be placed on a six-month furlough from April to September 2026. While not classified as layoffs, the unpaid leave has created financial strain for many employees, particularly those with family or medical responsibilities.
Technical staff have been notably affected. Around 62 engineers who had already resigned and were serving their notice period were informed that their notice would be waived, making 31 March their final working day. This has left them without pay during the transition to new roles at airlines such as Air India and Akasa Air. With an engineering workforce of roughly 800, further attrition is anticipated, raising concerns about operational continuity.
Salary delays have further impacted employee morale. What began as one-month delays has now stretched to as much as three months. As of early April, several senior employees had yet to receive their January salaries, while ground staff and loaders were still awaiting two months of pending pay.
The airline’s total liabilities are estimated to exceed ₹4,500 crore, including over ₹100 crore in statutory dues. Despite raising approximately ₹3,000 crore in 2024, SpiceJet continues to face financial pressure, leaving employees uncertain about the future as restructuring and cost-control measures accelerate.

​