Spirit Airlines is reducing its workforce by approximately 200 employees as part of its efforts to cut costs following its Chapter 11 bankruptcy filing in November. CEO Ted Christie conveyed in a staff memo that these decisions were difficult but necessary due to the challenges faced by the business. The company aims to optimize its organization and enhance efficiency to operate as a smaller airline and improve its financial position.
At the time of the bankruptcy filing, Spirit had around 13,000 employees, with the majority being unionized. The job cuts are focused on nonunion positions and are a component of the company’s strategy to achieve $80 million in cost reductions. Christie mentioned that with the recent workforce reductions, Spirit has met its target of cost savings.
The Florida-based airline had previously implemented measures such as furloughing pilots, offering extended voluntary leaves to flight attendants, reducing its network, and selling some of its Airbus jetliners to generate funds. Challenges faced by Spirit include the blocked merger with JetBlue, a Pratt & Whitney engine recall, and increased labor costs post-pandemic.
Despite these difficulties, Christie expressed confidence that the carrier remains on track to emerge from bankruptcy in the current quarter.
