Southwest Airlines has cut 15% of the corporate workforce and rapidly reduced overhead costs to become a “lean” company.
The airline said the layoffs are primarily targeting corporate overhead and leadership positions. Careers strive to build a “slimier and more agile organization” under its transformation plan, which will affect 1,750 jobs, including 11 senior leadership positions.
“We are a crucial moment as we transform Southwest Airlines into a faster, faster, more agile organization,” CEO Bob Jordan said in a statement.
Southwest said the majority of the separation would be completed by the end of the second fiscal quarter, reaching approximately $210 million for fiscal year 2025 and $300 million for fiscal year 2026.
The company expects to incur $60-$80 million in expenses related to retirement and post-employment benefits in the first quarter of 2025.
Southwest, particularly after activist investor Elliott Investment Management, took $2 billion in stake in his career, called on airlines to take action such as leadership changes to improve financial performance, and more. We have made significant changes to the suppression.
Last month, the company announced it had suspended certain corporate events and suspended employment and most summer internships, but plans to honor offers already made to limit discretionary spending. I'm doing it.
“Every dollar is important as we continue to fight back to great financial performance,” Southwest CEO Bob Jordan told employees in a January memo. Wall Street Journal It has been reported.
Last fall, carriers said they would implement “minimizing employment, optimizing scheduling efficiency, and improving corporate efficiency by exploiting supply chain opportunities.” Southwest aims to achieve a savings rate of $500 million in 2027, the company said in September Investor's Day.
During the day of investors, Southwest also detailed major changes to the pipeline, including providing allotted seats, evolving the boarding process, and introducing premium seats. Additionally, Red Eye Flight operations will begin in February to “maximise aircraft usage” and reduce the turnaround time between flights.
