Southwest Airlines has unveiled plans to lay off more than 1,700 employees as part of a significant cost-cutting strategy. This decision, described by the company’s CEO as “unprecedented” in the airline’s 53-year history, marks a major shift in the company’s operational approach, according to multiple reports.
The layoffs are primarily targeting the airline’s corporate offices, affecting some 11 senior positions with titles of vice president or higher, as reported by The New York Times. In total, approximately 15% of the corporate staff, equating to around 1,750 individuals, will be impacted.
In a staff note reviewed by CNBC reporters, CEO Bob Jordan outlined the financial expectations from this move. Southwest anticipates saving $210 million in 2025 and $300 million in 2026 by reducing its corporate workforce. “We have made the very tough decision to move forward with a reduction in our workforce, focused almost entirely on Corporate and Leadership positions,” Jordan stated in a press release. “This reduction affects approximately 1,750 Employee roles, or 15% of Corporate positions.”
Jordan emphasized the difficulty of this decision, acknowledging the significant contributions of the employees affected. “This is a very difficult and monumental shift, and I arrived at this decision after careful and thorough reflection, knowing how hard it will be to say goodbye to Cohearts who have been a significant part of our Culture and our accomplishments.”
Southwest Airlines has also implemented other cost-cutting measures, such as eliminating unprofitable routes, instituting a hiring freeze, and pausing the company’s intern program, as reported by CNBC.
According to an email received by KTLA, the layoffs occurred on a Monday via a Teams call, although KTLA has yet to independently verify this information. Based on the CEO’s news release, the layoffs will take effect in late April. During this period, most of the affected employees will not be required to report to work but will continue to receive their salaries, benefits, and any relevant bonuses.
