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Southwest Airlines will reduce its corporate and leadership workforce by 1,750 employees or roughly 15%. This will save the company $300 million annually, but it’s something unheard of at the airline as it has never had mass layoffs in its history.
As a result of this workforce reduction, the Company estimates partial year 2025 savings to be approximately $210 million. These savings exclude $60 million to $80 million that will be paid in severance payments and post-employment benefits. Impacted employees will be notified via Zoom tomorrow.
Bob Jordan, President, Chief Executive Officer & Vice Chairman of the Board of Directors, said:
This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions. We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization. I arrived at this decision thoughtfully and carefully, knowing how hard it will be to say goodbye to colleagues who have been a significant part of our Southwest Culture and accomplishments. I’m grateful to all Southwest Employees who have shared in our legendary history and to those that will guide us into the next era of Southwest Airlines.”
The airline has been struggling and it is essentially overhauling its business model. Southwest will introduce assigned seating, extra legroom options, and just began flying some redeye flights for the first time in its history.
Southwest has shut down its headquarters tomorrow and is having employees work remotely. Meetings will be held to terminate employees and it’s easier to do this remotely versus with an office full of people.
Anthony’s Take: Layoffs are always sad. I’ve had to let many employees go for individual performance as well as during cost-cutting layoffs. The folks let go just to balance the budget are always the saddest for me.
(Image Credits: Southwest Airlines.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
1 comment
A terrible time to lose your job, with the recent and ongoing Federal Govt. layoffs taking place this is going to hit the economy hard and the individual former employees even harder. The job market stinks right now with so much game playing going on in the job search process with algorithms in the applications and all the “ghost” jobs out there misleading people.