Spirit Airlines is laying off 200 workers to cut costs as it navigates bankruptcy and aims to stabilize its finances
Fort Lauderdale: Spirit Airlines is letting go of about 200 employees as part of its plan to save money while trying to recover from bankruptcy. CEO Ted Christie broke the news to staff on Wednesday.
Last year, Christie faced criticism from shareholders after he received a hefty retention bonus just before the airline filed for Chapter 11. The layoffs are part of a broader strategy to cut $80 million in annual costs.
At the end of last year, Spirit had around 13,000 employees, including about 2,000 nonunion workers. Christie emphasized that these cuts are necessary to adapt to the tough financial landscape.
He mentioned in a memo that the airline needs to operate on a smaller scale to regain financial stability. Spirit’s bankruptcy was a significant shift for the airline, which had been a leader in low-cost travel.
The pandemic hit Spirit hard, leading to over $2.2 billion in losses since 2020. Just before the bankruptcy filing, Christie received a $3.8 million bonus, which raised eyebrows.
The latest layoffs affect various departments and follow previous measures like pilot furloughs. Spirit’s situation highlights the challenges faced by budget airlines, especially in a volatile market.
Despite these challenges
