Southwest Airlines is the first major layoff in the company’s 53-year history, eliminating 1,750 jobs, or 15% of corporate workers.
Southwest Airlines is the first major layoff in the company’s 53-year history, eliminating 1,750 jobs, or 15% of corporate workers.
The Dallas-based airline said Monday that the job cuts will focus almost entirely on “the fictional and leadership positions of the company,” including senior leaders and directors. The positions of 11 senior leaders, which account for 15% of the company’s senior management committee, have been excluded.
Southwest CEO Bob Jordan said the job openings that are expected to be close by the end of June are part of plans to cut costs for airlines and turn them into “faster, faster, more agile organizations.” . In a statement.
“This decision is unprecedented in its 53-year history and changes require difficult decisions,” Jordan said.
Southwest estimates the cuts will save around $210 million this year and around $300 million in 2026.
In November, the airline extended its acquisition to airport workers, including customer service agents, baggage handlers and cargo workers, to avoid “overstaffing at certain locations.”
The company is under pressure to make profits from hedge fund Elliott Investment Management and raise the stock price, which has been falling sharply since early 2021. So far, Southwest shares have fallen 9.9%.
Both sides reached a ceasefire in October to avoid the Proxy fight, but Elliott won several seats on the Southwest Board.
