Southwest Airlines has significantly reduced employment for over 1,750 companies, including senior management roles, with its first major cuts aimed at saving costs.
Job cuts account for around 15% of corporate jobs, said low-cost operators expect the layoffs to be nearly complete by the second quarter.
Dallas-based Southwest expects savings to be around $210 million in 2025, with savings to be around $300 million for the full year of 2026.
Airline Chief Bob Jordan called the layoffs “unprecedented” and said, “As we transform Southwest Airlines into a slimmer, faster and more agile organization, we're at a pivotal moment. I'm here.”
The layoffs are part of Southwest's wide-ranging efforts to revamp its business after years of slimy profitability.
In early January, longtime Treasury Secretary Tammy Romo and longtime finance officer Tammy Romo, who will step down in April, and chief administrative officer Linda Rutherford, announced they would be resigning. Former Breeze Airways president Tom Doxey has since been appointed the airline's new chief financial officer.
In 2024, former CEO and executive chairman Gary Kelly left the company, and Southwest said six new directors will be residing on the board.
The airline's fourth quarter profit improved significantly over the same period in 2023 as it recorded a profit of $261 million compared to its past loss of $252 million.
However, the company's full-year profit was $465 million, almost exactly in line with the 2023 mark. Jordan admitted in Southwest's recent revenue that the airline's cost structure is “not where we want it to be.”
