Southwest Airlines plans to lay off more than 1,700 employees in a cost-cutting move the company’s CEO described as “unprecedented” in the airline’s 53-year history, according to multiple reports.
Those losing their jobs are reportedly in the airline’s corporate offices, including some 11 senior positions with titles of vice president or higher, according to reporting from The New York Times.
In a staff note viewed by CNBC reporters, CEO Bob Jordan said Southwest expects to save $ 210 million in 2025 and $300 million in 2026 as it lets go some 15% of its corporate staff, around 1,750 people.
“We have made the very tough decision to move forward with a reduction in our workforce, focused almost entirely on Corporate and Leadership positions. This reduction affects approximately 1,750 Employee roles, or 15% of Corporate positions,” Jordan said in a press release. “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.”
Other cost-cutting measures recently taken at the airline include getting rid of unprofitable routes, a hiring freeze and a pause on the company’s intern program, CNBC reported.
In an email to KTLA, one person said the layoffs happened Monday on a Teams call, though KTLA has yet to independently verify that information.
According to the CEO’s news release, the layoffs go into effect in late April and most of the cut employees will not be required to show up for work while they still receive salaries, benefits and any relevant bonuses until then.
