For the first time in its 53-year history, Southwest Airlines is dramatically reducing its workforce.
The airline announced in a letter from CEO Bob Jordan posted to the company website that Southwest is cutting some 1,750 jobs. The reduction represents 15% of the airline’s workforce.
According to Jordan’s statement, the cuts to staffing at the Dallas-based airline will focus largely on “corporate overhead and leadership positions,” including senior leadership and directors. The airline will eliminate 11 senior leadership positions, some 15% of the company’s senior management committee, are being eliminated.
The job cuts, according to Jordan, are part of a plan by the airline to slash costs and transform the company into a “leaner, faster, and more agile organization.” The cuts are scheduled to be completed by the end of June.
“This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions,” Jordan said.
Southwest estimated that the job cuts will save the company about $210 million this year and another estimated $300 million in 2026.
In November, the airline offered buyouts and extended leaves of absence to airport workers, including customer service agents, baggage handlers and cargo workers, in a bid to avoid “overstaffing in certain locations,” The Associated Press reported.
The company has been under pressure from hedge fund Elliott Investment Management to increase profits and boost the stock price, which has fallen sharply since early 2021. Southwest shares are down 9.9% so far this year, according to the AP report.
