Southwest Airlines announced unprecedented corporate layoffs on Monday, eliminating 1,750 jobs (15% of its leadership and corporate teams) through June 2024. The cost-cutting measure marks the first large-scale workforce reduction in the airline's 53-year history. 'This decision requires us to make difficult choices for long-term success,' CEO Bob Jordan stated in a
transformative push toward a leaner, faster organization.
The cuts target:
- 15% of Senior Leadership Committee roles
- Corporate overhead positions (86% of total layoffs)
- Director-level management teams
Southwest expects $210 million in savings this year, growing to $300 million annually by 2026. This follows pressure from activist investor Elliott Management, which gained board seats after a 2023 proxy truce. Airline shares fell 9.9% year-to-date amid ongoing operational challenges.
The Dallas-based carrier previously offered voluntary buyouts to airport workers in November 2023 to avoid overstaffing. Analysts suggest these layoffs signal a strategic shift from Southwest's traditionally employee-focused culture toward shareholder profitability demands.
