Southwest Airlines announced this week it is laying off 1,750 employees, the first-ever major layoff in Southwest’s 53-year history.
According to Dallas-based Southwest, the layoffs would focus on senior leadership and directors, so-called “corporate overhead and leadership positions.” The layoffs are scheduled to be completed the end of June. CEO Bob Jordan said in a statement that the move, expected to trim $210 million in 2025 and $300 million next year, is designed to create a “leaner, faster, and more agile organization.”
According to an AP report published by ABC News, Southwest has been under pressure from Elliott Investment management—a hedge fund that now holds several seats on the Southwest board—to increase profits and boost stock price. Southwest stock has fallen “sharply” since early 2021, and shares are down 9.9% this year.
Jordan said, “This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions.”
An earlier version of this story incorrectly said the layoffs involved 15 percent of the airline’s total workforce but it will affect only corporate jobs. We regret the error.
