Source: Kevin Carter / Getty
Dallas-based Southwest Airlines is reducing its corporate workforce by 15%, affecting approximately 1,750 employees, the company announced Monday. The airline, which employs over 72,000 full-time and full-time equivalent workers, cited financial pressures as the reason behind the decision.
CEO Bob Jordan acknowledged the difficulty of the move, stating, “As we continue to work together to transform our Company, an area of intense focus will be maximizing efficiencies and minimizing costs,” he continued, “This is a very difficult and monumental shift, and I arrived at this decision after careful and thorough reflection, knowing how hard it will be to say goodbye to Cohearts who have been a significant part of our Culture and our accomplishments.”
The airline had previously attempted to reduce expenses by offering buyouts to employees at 18 airports. In June 2024, hedge fund Elliott Investment Management took a $1.9 billion stake in the carrier, calling for a leadership and operations overhaul a few months later. Southwest took a financial hit after an operational meltdown caused 16,700 flights to be canceled in late December’s busy holiday travel week (according to CNN).
The announcement follows Southwest’s fourth-quarter earnings call, where the company highlighted increasing labor costs despite implementing a hiring freeze for management, headquarters positions, and external contractors. This will be the company’s first mass layoff in its 53-year history.
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