Southwest Airlines has announced it will cut about 15% of its corporate workforce, or approximately 1,750 jobs, in an effort to reduce costs. The move, which CEO Bob Jordan called “unprecedented,” is the company’s first large-scale layoff and aims to transform Southwest into a leaner, faster, and more agile organization.
The layoffs will mostly be completed by the end of the second quarter and will include some senior leadership roles. According to Jordan, the cuts are necessary to ensure the company funds the right work, reduces duplicative efforts, and achieves a lean organizational structure that drives clarity, pace, and urgency.
Southwest expects to save around $210 million in costs this year and approximately $300 million in 2026. The airline has already implemented several cost-cutting measures, including a hiring freeze, pause on internship programs, and an end to team-building rallies.
The move comes after Southwest reached a settlement with activist investor Elliott Investment Management, which won five board seats but was not successful in pushing for Jordan’s replacement as CEO. Last year, the airline outlined plans to increase profits by ditching its open seating model and launching overnight flights.
Affected employees will continue to receive salary, benefits, and bonuses until the layoffs take effect in late April.
Source: https://www.cnbc.com/2025/02/17/southwest-airlines-to-cut-15percent-of-corporate-jobs-in-cost-saving-push.html