Robert Besser
21 Feb 2025, 19:48 GMT+10
DALLAS, Texas: Southwest Airlines is laying off 1,750 employees, or 15 percent of its corporate staff, in the company's first significant job cuts in 53 years.
The airline, based in Dallas, said most of the layoffs will affect corporate and leadership roles, including directors and senior leaders. Eleven senior leadership positions—15 percent of the company's top management team—will be eliminated.
The job cuts, expected to be mostly finished by the end of June, are part of a plan to reduce costs and make the airline run more efficiently, CEO Bob Jordan said. "This is a difficult but necessary decision," he added.
Southwest expects these layoffs to save about US$210 million this year and around $300 million by 2026.
Last November, the airline tried to reduce staff by offering buyouts and extended leave to airport workers such as customer service agents, baggage handlers, and cargo staff.
The company has also been under pressure from hedge fund Elliott Investment Management to increase profits and raise its stock price, which has dropped significantly since early 2021. So far this year, Southwest's stock has fallen by 9.9 percent.
Southwest and Elliott agreed to a deal in October to avoid a major conflict. However, Elliott gained several seats on the airline's board, giving it influence over the company's leadership decisions.
Get a daily dose of Broadcast Communications news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Broadcast Communications.
More InformationTOKYO, Japan: The Bank of Japan is expected to raise interest rates at least once more this year, likely in the third quarter, bringing...
NEW YORK, New York - U.S. stock markets closed lower on Monday, with the major indexes showing mixed performances as investors digested...
BLAGNAC, France: Airbus has set a target of delivering around 820 commercial jets in 2025, marking a seven percent increase from the...
NEW DELHI, India: Google is preparing to open its first physical retail stores outside the U.S., with locations in India likely to...
WASHINGTON, D.C.: One in five Americans say they are buying more than usual because they are worried about President Donald Trump's...
NEWPORT BEACH, California: Chipotle Mexican Grill is ramping up hiring efforts ahead of its busiest time of the year, known as burrito...
Hong Kong, February 25 (ANI): Alarm rippled through Australian and New Zealand corridors of power as a Chinese naval task group sailed...
(Photo credit: Michael Madrid-Imagn Images) Emmy-winning sportcaster Al Trautwig, known for his work at 16 Olympics Games and throughout...
Moscow [Russia], February 24 (ANI): TV BRICS International Media Network has presented a new documentary film titled 'Partitura. Young...
The 16th package of Ukraine-related sanctions also targets an actor, a chess grandmaster, a TV presenter and an Olympic gymnast Russian...
New Delhi [India], February 22 (ANI): The Ministry of Information and Broadcasting is reviewing existing laws related to all forms...
(Photo credit: Geoff Burke-Imagn Images) The LPGA filed a complaint in federal court this week to recover alleged unpaid funds from...