For the first time in Southwest Airline’s history, the carrier is cutting their staffing numbers – but frontline employees, including pilots and flight attendants, will not be affected.
After pressure from activist investors to cut costs and improve profitability, Southwest Airlines is taking a step that many thought would never happen.
The Wall Street Journal reports the airline is holding their first ever round of layoffs, cutting their workforce by 1,750.
Eliminated Jobs Include Senior Leadership, But Frontline Staff Remains Untouched
According to the Journal, the job cuts will include 11 senior leadership positions. It is unknown how many additional jobs will be cut from Dallas or other cities. By shedding jobs, the airline is expected to save over $500 million by 2027.
The layoffs will not affect frontline staff employed by the airline. Gate agents, flight attendants, and pilots will all be spared.
In a letter seen by the newspaper, Southwest CEO Bon Jordan insisted that the first ever layoff round was a “difficult and monumental shift.” He also stressed that: “We must ensure we fund the right work, reduce duplicative efforts, and have a lean organizational structure that drives clarity, pace, and urgency.”
The cuts will become effective in April 2025. Until then, the employees will continue to receive their pay and benefits.
Southwest’s layoffs are the latest major change to come after a long-standing proxy battle with Elliott Investment Management. In October 2024, the airline announced their plans for “Southwest 2.0,” which included several changes to the in-flight product. The declaration included the launch of premium seating, assigned seating, and a partnership with Icelandair.
Later that month, the airline also agreed to add six new members to their board, while former chief executive Gary Kelly resigned from the board chairman position.
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