Over 1,700 jobs will be lost in a “unprecedented” mass layoff announcement by Southwest Airlines. Southwest said on Monday that 15% of its corporate and senior staff would be let go.
“This decision is unprecedented in our 53-year history,” stated Bob Jordan, the CEO and president of Southwest Company.
According to Southwest, the 1,750 layoffs will not begin until the end of April. According to Southwest, the majority of workers who receive notice of their “displacement” will not be returning to work; nevertheless, they will still be entitled for bonuses, perks, and compensation until April.
“This is a very difficult and monumental shift, and I arrived at this decision after careful and thorough reflection, knowing how hard it will be to say goodbye to Cohearts who have been a significant part of our Culture and our accomplishments,” Jordan stated. “We are building a leaner organization with increased clarity regarding what is most important, quicker decision making, and a focus on getting the right things done with urgency—not unlike our entrepreneurial founding spirit of the 1970s.”
The leadership of Southwest has been under pressure from investors to find methods to reduce expenses.
According to the corporation, the layoffs will result in savings of over $300 million in 2026 and another $210 million in the remaining months of 2025.
A board reorganization and a greater emphasis on cost-cutting measures, such as implementing an allocated seating policy, coincide with the announcement.
Due to the airline’s persistently delayed flights, the Transportation Department also sued the corporation last month.
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2.5% of Southwest Airlines were impacted
Although the 1,750 corporate-level layoffs may seem like a lot, they actually represent 2.5% of Southwest Airlines’ 72,000 employees. Eleven vice president-level or above positions were eliminated.
In its press statement, Southwest states that post-employment perks and severance packages will accompany the layoffs.
Will passengers on airlines be affected by this?
Although Southwest did not mention any effects on passengers in its release, flight operations at Dallas’ Love Field and other airports shouldn’t be impacted because the cutbacks target corporate and leadership positions rather than ticket agents, flight attendants, pilots, or ground workers.
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What is known about more potential cuts?
According to unions, they don’t anticipate Southwest making any attempts to reduce its workforce.
Since the latest earnings report, there have been rumors of corporate cuts at Southwest; nevertheless, because the airline is headquartered in Dallas, it is assumed that many of the 1,750 people thrown off will come from the Dallas corporate headquarters.
