DALLAS – In a historic move, Southwest Airlines has announced plans to reduce its corporate workforce by 15%, eliminating nearly 2,000 jobs. This marks the first mass layoff in the Dallas-based airline’s 53-year history.
Key Details of the Workforce Reduction
The restructuring will impact approximately 1,750 corporate and leadership positions, with a primary focus on senior leadership and director-level roles. As part of this initiative, the airline plans to eliminate 11 senior leadership positions. The cost-cutting measures are expected to save Southwest an estimated $300 million annually.
Southwest has long taken pride in avoiding large-scale layoffs, making this decision particularly significant.
“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,” said Bob Jordan, President, Chief Executive Officer & Vice Chairman of the Board. “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.”
Background and Contributing Factors
Southwest’s decision follows an ongoing effort to streamline operations and improve financial performance, particularly after facing pressure from activist investor Elliott Investment Management last year.
In June 2024, Elliott acquired an 11% stake in Southwest and pushed for significant changes to enhance the airline’s profitability. A truce was reached in October to avoid a proxy battle, but the agreement resulted in Elliott securing multiple seats on Southwest’s board of directors.
A Southwest spokesperson acknowledged that corporate expansion had outpaced operational growth over the years, prompting the need for a more efficient structure.
“With the best intentions, the growth of our leadership and noncontract functions has outpaced our operation’s growth for many years,” the spokesperson told FOX 4. “Now, this group must become more lean, efficient, and agile to better serve our frontline employees in our shared mission of serving our customers.”
Additionally, Southwest is currently facing a lawsuit from the U.S. Department of Transportation over persistent flight delays and service disruptions, further underscoring the challenges the airline is navigating.
Timeline and Next Steps
The workforce reductions will begin in late April. Southwest has stated that most affected employees will continue to receive their salaries without being required to report to work during the transition period.
This restructuring signals a strategic shift for the airline as it seeks to balance financial sustainability with its long-standing reputation for employee retention and customer service.