Southwest Airlines is making big changes. The airline plans to cut 1,750 jobs, which is about 15% of its corporate team. This is the first major layoff in the company’s 53 years of operation.
The cuts will mainly affect corporate roles, especially in leadership. Eleven senior leadership positions will be eliminated, which is a significant reduction in the management team. Southwest CEO Bob Jordan said the airline aims to become a “leaner, faster, and more agile organization.”
The layoffs are set to wrap up by the end of June. Jordan noted that this decision is unprecedented and that change often means tough choices. He estimates the cuts will save Southwest about $210 million this year and around $300 million by 2026.
In the past, the airline tried to avoid overstaffing by offering buyouts and extended leaves to workers at airports. This included roles like customer service agents and baggage handlers.
Southwest has been facing pressure to improve profits from hedge fund Elliott Investment Management. The airline’s stock price has dropped nearly 10% this year. Back in October, Southwest and Elliott reached a truce to avoid a proxy fight, but Elliott gained some influence on the board to continue pushing for changes.
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Corporate management, Business, Labor, U.S. news, General news, Article, 118910545
