Southwest Airlines is cutting 15% of its corporate positions, as the airline looks to streamline operations while minimising costs.
The workforce reduction of approximately 1,750 employee roles is focused almost entirely on corporate and leadership positions. Additionally, 11 senior leadership positions, which also represent 15% of the company’s senior management committee, will be cut as part of this restructuring.
“This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions," said Bob Jordan, president, chief executive officer, and vice chairman of the board of directors. “We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organisation.”
This workforce reduction is expected to save the Dallas-based airline partial savings of $210 million during 2025 and full-year savings of $300 million in 2026. These savings exclude an expected one-time charge in the first quarter of 2025, ranging from $60 million to $80 million.
Southwest Airlines reported an annual income of $465 million for 2024, remaining flat compared to 2023.
The airline confirmed that these job cuts will be “substantially” complete by the end of the second quarter of the year.
Tags:
Southwest Airlines
Related posts
ERA SAYS ETS MUST APPLY TO ALL AIRLINES OR NONE
By
Dino D'Amore
28th July 2011