SpiceJet has started reducing its workforce as financial troubles deepen, with more than 500 employees expected to be affected in the first phase. The airline, which once operated 50 planes, now runs only about 13 of its own aircraft and 14 wet-leased planes that come with their own crew. With a smaller fleet and rising liabilities, management has moved to furloughs and leave without pay, signalling that up to 20 per cent of staff could eventually be impacted.
The company’s human resources department informed employees in a letter dated 31 March that many would be placed on a six-month furlough from April to September 2026. While technically not layoffs, unpaid leave has left staff struggling financially. Employees say the situation is especially difficult for those with family responsibilities or medical needs.
Engineers have also been hit hard. Around 62 engineers who had resigned and were serving notice were told their notice period was waived, making 31 March their last working day. This left them without pay before joining new employers such as Air India or Akasa Air. With an engineering workforce of about 800, more exits are expected, raising concerns about operational stability.
Salary delays have further damaged morale. Payments that were once delayed by a month are now lagging by up to three months. As of early April, many senior employees had not received January salaries, while ground staff and loaders were waiting on two months of pay.
The airline’s liabilities are estimated at over Rs 4,500 crore, including pending statutory dues of more than Rs 100 crore. Despite raising Rs 3,000 crore in 2024, SpiceJet continues to struggle, leaving staff uncertain about the future as cost-cutting measures intensify.