Southwest Airlines has announced plans to eliminate 1,750 jobs, representing 15% of its corporate workforce, marking the first major layoffs in the company's 53-year history. These cuts will primarily affect corporate overhead and leadership roles, including 11 senior leadership positions. The layoffs are expected to be completed by the end of the second quarter of 2025.
CEO Bob Jordan described this decision as difficult but necessary to streamline operations and reduce duplicative efforts. The restructuring aims to save the company $210 million in 2025 and $300 million in 2026. The layoffs will result in one-time pretax charges of $60 million to $80 million for severance and other benefits.
This move follows pressure from activist investor Elliott Investment Management, which has been advocating for improved profitability and operational efficiency at Southwest. The company is also implementing broader changes, such as ending its open-seating policy and introducing premium-seating options, to enhance revenue and customer experience.
Despite these challenges, Southwest Airlines remains committed to its core values and continues to prioritize customer service and operational excellence.
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