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

Core Points - Spirit Airlines is laying off approximately 200 employees as part of a strategy to reduce expenses and emerge from bankruptcy [1][2][7] - The layoffs are part of a broader plan to trim $80 million in annual expenses, with the airline having around 13,000 employees before the cuts [2][8] - CEO Ted Christie emphasized the need to adapt to current financial realities and stated that the company must operate as a smaller airline to regain financial stability [2][3] Financial Context - Spirit Airlines filed for Chapter 11 bankruptcy last year due to heavy debt burdens and increased competition in the budget travel sector [3][5] - The airline has reported over$2.2 billion in losses since 2020, significantly impacting its financial position and erasing nearly all profits since adopting its ultralow-cost strategy in 2006 [6][11] - The bankruptcy process is expected to conclude later this quarter, with the company aiming to stabilize its operations [5][9] Leadership and Compensation - CEO Ted Christie received a $3.8 million retention bonus just a week before the bankruptcy filing, which has drawn criticism from shareholders [8][10] - The board justified the bonus as necessary to retain experienced leadership during the financial crisis [11]