Airlines implement workforce reductions in corporate and leadership roles
Dallas, February 17, 2025 /PRNEWSWIRE/ -Southwest Airlines Co. (NYSE: LUV) (“Company”) today announces workforce cuts to create a more lean, more agile organization as part of the airline’s transformation plan I did.
The reduction in the workforce for around 1,750 employee roles is almost entirely focused on corporate overhead and leadership positions, accounting for around 15% of corporate positions, including senior leaders and directors . The positions of 11 senior leaders (from Vice President), representing 15% of the company’s senior management committee, will be eliminated as part of this restructuring. The separation will be significantly completed by the end of the second quarter of 2025.
“This decision is unprecedented in its 53-year history, and changes require difficult decisions. We are transforming Southwest airlines into slimmer, faster and more agile organizations. It’s a crucial moment in the world.” Bob Jordanpresident, chief executive officer and vice-chairman of the board of directors. “I reached this decision with thoughtful and careful knowledge of how difficult it is to say goodbye to a colleague, an important part of our Southwest culture and achievements. The next era of Southwest Airlines To those who lead us to.
As a result of this workforce reduction, we have roughly estimated partial savings for 2025. $210 million 2026 year-round savings 300 million dollars. These savings exclude one-off fees expected for the first quarter of 2025. $60 million In $80 millionvirtually everything is related to retirement benefits and post-employment benefits, and the company expects to treat it as a special item. One-time costs vary depending on the specific employee election during the labor cut. The company will continue to report on additional cost-saving actions as 2025 progresses.
Notes on Forward-Looking Statements
This press release has amended forward-looking statements within the meaning of Section 27A of the Securities Act 1933, and Section 21E of the Securities Exchange Act 1934. Specific forward-looking statements include statements relating to the company’s intention to (i) create a more lean and more agile organization. (ii) the company’s expectations regarding change plans. (iii) Our estimates relating to timing and number of segregations, employee elections, one-off retirement benefits, and post-employment benefits; (iv) Our expectations relating to future cash expenditures, including factors and assumptions underlying our expectations; (v) Our expectations regarding savings related to reducing our workforce. (vi) Includes the Company’s financial and operational outlook, expectations, goals, plans, goals and forecasts, and factors and assumptions underlying the Company’s expectations and forecasts. These forward-looking statements are based on the Company’s current estimates, intentions, beliefs, expectations, goals, strategies and forward-looking statements and are not guarantees of future performance. Forward-looking statements include risks, uncertainties, assumptions, and other factors that are difficult to predict and may vary materially depending on whether actual results are expressed or shown by them. . Factors include, among other things, (i) the effects of disease fears and actual outbreaks, extreme or bad weather and natural disasters, competitor behavior (no restrictions, pricing, scheduling, capabilities, network decisions, and integration and alliances. Includes activities), consumer perceptions, economic conditions, banking conditions, fear or terrorism or war, sociodemographic trends, and other factors beyond the company’s management of the company regarding consumer behavior. decisions, plans, strategies, and results. (ii) our ability to implement, migrate, operate and maintain the necessary information technology systems and infrastructure in a timely manner to support its operations and initiatives, including those related to revenue management and allocation and premium seating. . (iii) our ability to acquire and maintain the appropriate infrastructure and equipment to support its operations and initiatives; (iv) changes in fuel prices, volatility in fuel prices, volatility of products used to hedge jet fuel, and changes in the company’s fuel hedging strategy and position to the company’s business plan and performance of operations. (v) Reliance on the Company for Boeing Company (“Boeing”) and its aircraft delivery to Boeing Suppliers, certification of Boeing Max 7 aircraft, and reliance on the Company for fleet and capacity planning, operation, maintenance, strategy and goals. (vi) Our reliance on the Federal Aviation Administration for safety approvals for new cabin layouts and certification of Boeing Max 7 aircraft. (vii) Our reliance on its technical plans, plans and expectations relating to its technical plans, plans and expectations, particularly in relation to its technical plans, revenue management, operational reliability, fuel supply, maintenance, global distribution systems, environmental sustainability, and company impact. The result of delayed or defaulted operations and operations of third parties. (viii) the ability to prioritize our initiatives and focus areas and related expenditures in a timely and effectively manner. (ix) the impact of labor issues on the company’s business decisions, plans, strategies, and outcomes. (x) the impact of government regulations and other government actions on the company’s business plans, outcomes and operations; (xi) the company’s reliance on employees, including the ability to hire and retain a sufficient number of qualified employees with appropriate skills and expertise, will effectively and efficiently maintain its operations; Includes the company’s ability to implement plans, strategies, and initiatives. (xii) the costs and impact of activist shareholder actions; (xiii) other factors as explained in the company’s filing with the Securities and Exchange Commission. December 31st2024.
Southwest Airlines Co.
Southwest Airlines Co. operates one of the world’s most acclaimed and awarded airlines, offering unique value and hospitality at 117 airports in 11 countries. Southwest, on a plane in 1971, democratizing the air travel through friendly, reliable, low-cost air travel, and currently air travelers flying non-stop in the US more than any other airline. It’s carrying 1. By enabling unparalleled hospitality to more than 72,0002 people, Maverick Airlines cherishes passionate loyalty among the over 140 million customers that were brought in in 2024. It’s there. Southwest leverages its unique heritage and mission of serving communities around the world. People and purpose that puts the community at the heart of success. For more information, visit southwest.com/citizenship.
Based on the US Department of Origins and Destination Survey of Quarterly Airlines from the First Quarter of 2021 onwards. December 31st2024
Source Southwest Airlines Co.
