Southwest Airlines has announced plans to cut 1,750 jobs, marking the airline’s first major layoffs in its 53-year history. The majority of the cuts will be corporate positions, affecting about 15% of the workforce.
The decision was made by CEO Bob Jordan, who stated that it is a “pivotal moment” for the company as it transforms into a leaner and more agile organization. Jordan emphasized that he arrived at this decision after careful consideration, knowing it would be difficult to part with colleagues who have contributed significantly to Southwest’s culture and accomplishments.
The job cuts are expected to save the airline around $210 million this year and $300 million next year. However, the company will incur a one-time cost of $60 million to $80 million for severance and other benefits. This move comes as Southwest continues its efforts to streamline operations and make sweeping changes, including adopting an assigned seating policy and introducing red-eye flights.
Southwest had previously been criticized by hedge fund Elliott Management, which accused the airline’s management and board of complacency and failing to control costs. In response, Jordan implemented a three-year plan to address these concerns and improve profitability. The company has reported profits each year since 2020 and remains one of the few major U.S. airlines that has never filed for bankruptcy protection.
Despite facing challenges, Southwest remains a significant player in the industry, carrying more passengers and operating more flights than any other carrier in the United States. Its economy class has consistently received high customer satisfaction scores, making it a beloved airline among fliers.
Source: https://www.nytimes.com/2025/02/17/business/17southwest-airlines-layoffs.html