Southwest Airlines to reduce corporate workforce by 15% in its first-ever layoffs

Southwest Airlines Co. is set to eliminate approximately 1,750 corporate jobs, marking the first layoffs in its history as part of a cost-cutting initiative. The cuts, affecting 15% of leadership roles—including senior executives and directors—will begin in late April and are expected to be largely completed by the end of the second quarter, the airline announced Sunday.

“This is a challenging and significant change,” CEO Bob Jordan stated in a letter to employees, explaining that leadership and non-contract positions have expanded beyond the airline’s operational growth for years.

The layoffs come amid a period of major upheaval for Southwest, which has faced pressure from activist investor Elliott Investment Management, undergone a board restructuring, and introduced operational changes. The airline is shifting away from its traditional business model by introducing premium seating options and additional legroom, as well as launching redeye flights.

While Southwest has long touted a history of never implementing involuntary layoffs in its more than 50-year existence, it has recently taken steps to streamline its workforce. Last month, it halted hiring for management and headquarters positions, and last year, it paused hiring for pilots and flight attendants. In November, voluntary buyout offers and extended leaves were extended to airport workers in 18 cities, including Los Angeles and Atlanta.

Additionally, Southwest’s chief financial officer and chief administrative officer have recently announced their retirements.

Despite stronger financial results in the last quarter of 2024, the airline warned on January 30 that rising costs—driven by inflation and newly ratified labor agreements—were eroding gains from robust leisure travel demand. The company expects to save approximately $210 million this year and $300 million next year through these job cuts, though it anticipates a one-time charge of $60 million to $80 million this quarter.

“Transforming how we operate is crucial for becoming a more agile company, and this is just the beginning,” Jordan told employees. “We are streamlining the organization to focus on what truly matters.”

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