Southwest Airlines revealed on Monday that it will lay off 1,750 employees, representing 15% of its corporate and leadership positions. This marks the airline’s first major layoffs in its 53-year history. The cuts, scheduled to begin in April, will affect 11 senior leadership roles, including vice presidents and higher-level executives.
The company expects the layoffs to save $210 million in 2025 and $300 million in 2026, although it will incur a one-time severance expense of $60 million to $80 million. Southwest’s CEO Bob Jordan acknowledged that the decision was a “monumental shift” as the company focuses on becoming more “lean, efficient, and agile” during its ongoing transformation.
The layoffs come amid pressure from activist investors, including Elliott Investment Management, which has called for leadership and operational changes after the airline’s stock price dropped by more than 50% since 2021. Recently, Southwest appointed a new CFO, Tom Doxey, and is also undergoing leadership changes, with two top executives set to retire in April 2025.
Southwest Airlines, which operates in 117 airports across 11 countries and employs over 72,000 people, is also recovering from a holiday travel crisis, which led to 16,700 flight cancellations in December.
Source: Swifteradio.com
