Southwest Airlines to Cut 1,750 Corporate Jobs in First Mass Layoff

Southwest Airlines (NYSE: LUV) is cutting 15% of its corporate workforce, breaking with its 53-year history of avoiding mass layoffs.

The airline announced Monday it will eliminate 1,750 positions, including 11 executive roles at the vice president level or higher, with most reductions to be completed by the end of June 2025.

Financial benefits from the workforce reduction are projected at $210 million in 2025, rising to $300 million the following year. The restructuring will trigger severance and benefit payouts totaling $60 million to $80 million.

“We are at a pivotal moment as we carry out our three-year business plan to transform Southwest Airlines,” Chief Executive Bob Jordan said in a message to employees. “As we continue to transform our Company, we must ensure we fund the right work, reduce duplicative efforts, and have a lean organizational structure that drives clarity, pace, and urgency.”

Financial benefits from the workforce reduction are projected at $210 million in 2025, rising to $300 million the following year. The restructuring will trigger severance and benefit payouts totaling $60 million to $80 million.

Elliott Management pressured Southwest for changes after building a roughly 10% ownership stake last year. The activist fund criticized the airline’s cost controls and profit margins, pushing for operational reforms.

Southwest’s strategic overhaul extends beyond staffing cuts. The carrier is abandoning its long-standing open-seating system, introducing premium seating options, and commencing overnight flights to boost aircraft utilization.

While maintaining its position as the largest domestic US carrier by flight volume, Southwest has struggled with rising operational costs despite strong customer satisfaction ratings. The airline’s storied profit streak, spanning nearly five decades, ended in 2020 amid pandemic disruptions, though it has remained profitable since.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

GM’s Cruise Slashes Jobs in Pivot from Robotaxi Business

Cruise will eliminate about half its workforce as the General Motors (NYSE: GM) subsidiary abandons...

Sunday, February 9, 2025, 07:32:00 AM

Meta Platforms Will Lay Off Another 10,000 Employees as Zuckerberg Embarks on ‘Year of Efficiency’

Meta Platforms (NASDAQ: META) confirmed rumours of further impending layoffs on Tuesday, unveiling plans to...

Wednesday, March 15, 2023, 12:53:00 PM

Bell Targets 1,200 Union Jobs in Latest Round of Cuts

Company says media division not affected...
Wednesday, February 12, 2025, 07:34:39 AM

Google Reportedly Begins Process of Seeking Cheaper Labor Following Layoffs

Alphabet’s (NASDAQ: GOOGL) Google has commenced a series of layoffs impacting hundreds of its employees,...

Saturday, May 4, 2024, 07:25:00 AM

Massive Layoffs Loom as Postmedia Acquires SaltWire Network

SaltWire Network, Atlantic Canada’s largest newspaper chain, is making substantial job cuts as part of...

Thursday, August 22, 2024, 08:35:46 AM