Southwest Airlines to lay off 1,750 corporate jobs
Southwest Airlines will cut 15% of corporate jobs (about 1,750 roles) as part of its ‘transformational’ cost-saving plan, in an effort to reduce costs and create a leaner and more…
February 18, 2025
Southwest Airlines will cut 15% of corporate jobs (about 1,750 roles) as part of its ‘transformational’ cost-saving plan, in an effort to reduce costs and create a leaner and more agile organization by streamlining its organizational structure. The eliminated jobs will include senior leadership and directors.
Southwest has said that no less than eleven senior leadership positions (Vice President and above), representing 15% of the Company’s senior management committee, will be eliminated as part of this restructuring. Separations will be substantially complete by the end of the second quarter of 2025.
The workforce reduction will produce partial year savings of approximately $210 million in 2025, and full-year savings of approximately $300 million in 2026.
The 2025 savings exclude an expected one-time first quarter charge of $60 million to $80 million, related to severance payments and post-employment benefits. The company will treat these as a special item.
Bob Jordan, the President, Chief Executive Officer and Vice Chairman of the Southwest Airlines Board of Directors said that: “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. 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. I’m grateful to all Southwest Employees who have shared in our legendary history and to those that will guide us into the next era of Southwest Airlines.”
