Spirit Airlines lays off 200 workers in cost-cutting move as firm looks to emerge from bankruptcy

Spirit Airlines is laying off approximately 200 employees as part of an effort to reduce expenses as the company looks to emerge from bankruptcy, the company said.The airline’s top executive, CEO Ted Christie, informed employees of the job cuts on Wednesday evening.Christie came under fire from Spirit shareholders late last year after it was learned that he had received a multi-million dollar retention bonus just a week before the company filed for Chapter 11 protection.The layoffs are part of Spirit’s strategy to trim $80 million in annual expenses.According to court filings related to its bankruptcy case, the airline had approximately 13,000 employees late last year, including around 2,000 nonunion workers.Christie told employees that the job cuts were necessary in order to adapt to current financial realities.“As you all know, we’re facing significant challenges with our business,” he wrote in a memo to employees that was reported by the Wall Street Journal.“The bottom line is, we need to run a smaller airline and get back on better financial footing.”Spirit Airlines filed for bankruptcy last year, citing heavy debt burdens and heightened competition in the budget travel sector.The airline, once a pioneer of the ultralow-cost model, also suffered a major setback when a proposed merger with JetBlue was blocked by a federal judge.Despite these hurdles, Christie expressed confidence that Spirit’s bankruptcy process is on track and that the company expects to emerge from Chapter 11 later this quarter.The bankruptcy marked a dramatic shift for Spirit, which had reshaped air travel by offering low fares and à la carte pricing for services such as water, seat selection, and printed boarding passes.The strategy fueled rapid growth and positioned Spirit as a leader in the budget airline space.But the coronavirus pandemic and subsequent market challenges led to significant hemorrhaging of cash, with Spirit reporting over $2.2 billion in losses since 2020...