The low-cost carrier from the United States (US), Southwest Airlines said it has cut around 15% of corporate jobs or around 1,750 employees.
The company said Monday it expects savings from the cuts to amount to $210 million this year and about $300 million in 2026.
The layoffs will mostly occur by the end of the second quarter and include several senior leadership positions, CEO Bob Jordan said in a staff note.
"This decision is unprecedented in our 53-year history, and change requires us to make difficult decisions," Jordan said in a news release, as quoted by CNBC International, quoted Tuesday (2/18/2025).
"We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster and more agile organization."
Southwest Airlines' decision to cut its workforce comes months after it settled with activist investor Elliott Investment Management, which won five seats on Southwest's board of directors, but was unsuccessful.
The company also pushed to have Jordan replaced as CEO, though to no avail.
Southwest's latest cost-cutting moves include a hiring freeze, a temporary suspension of internship programs and an end to team-building "pep rallies," a company tradition that dates back to 1985. Southwest is also aggressively cutting unprofitable routes.
Last year, Southwest outlined a plan to boost profits that included ditching its more than 50-year-old open-seat model in favor of assigned seats and creating sections with extra legroom.
Southwest also recently launched overnight flights for the first time.
"We must ensure that we fund the right work, reduce duplicative efforts, and have a lean organizational structure that drives clarity, speed, and urgency," Jordan said in his memo Monday.
The layoffs will take effect at the end of April, Jordan said, adding that most affected employees will not be working but will continue to receive salaries, benefits and bonuses until then.
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