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 airline, which had around 13,000 employees at the time of filing, aims to optimize its organization and achieve greater efficiency by trimming nonunion positions to achieve $80 million in cost savings.
Christie mentioned that the recent job cuts, along with other measures taken, have enabled the company to meet its cost-saving target. Spirit Airlines, headquartered in Dania Beach, Florida, had previously implemented furloughs for pilots, offered extended voluntary leaves for flight attendants, reduced its network, and initiated the sale of some Airbus jetliners to generate funds.
The airline’s struggles were exacerbated by the cancellation of a planned merger with JetBlue due to antitrust concerns, as well as challenges such as a Pratt & Whitney engine recall and increased labor costs during the pandemic. Despite these difficulties, Christie expressed confidence that Spirit Airlines remains on track to emerge from bankruptcy in the current quarter.
