SpiceJet Shares In Focus After Cost Cutting Measures; Check Insights

After the aviation company today decided to lay off its 1,400 employees, SpiceJet share price came under the sell-off heat, losing over 5 per cent in the intraday trade. SpiceJet declared the layoff move in line with its cost-cutting measures.

SpiceJet share price today opened upside at Rs. 68.50 per share level and went on to touch an intraday high of Rs. 68.97 per share level. After the stock market news about the SpiceJet layoff, profit-booking was triggered and the aviation stock touched an intraday low of Rs 65 per share on NSE, logging around 16 per cent retracement from its 52-week high of Rs 77.50 per share.

Officials of the SpiceJet company said on Monday that they have plans to lay off around 1,400 employees in the coming days as the airline works to significantly reduce costs and streamline operations of its depleted aircraft fleet.

Faced with financial woes, legal battles, and other headwinds, the no-frills carrier might ask more staff to leave as there is excess manpower now compared to the number of planes in service. A final decision on the quantum of layoffs is expected this week.

SpiceJet Ltd's primary business is providing air transport services for the transportation of passengers and cargo.