Southwest Airlines announces unprecedented layoffs after 53 years

Big news from Southwest Airlines. After 53 years, they’re doing something they’ve never done before: layoffs.

Why Now?

Even the most successful companies sometimes need to adjust. Southwest is aiming to become more efficient.

The bottom line? They want to cut costs.

The Numbers

Here’s what we know:

• 1,750 corporate employees will be affected. That’s about 15% of their corporate team.
• 11 senior leadership positions are also being eliminated.
• Southwest expects to save $210 million in 2025 and $300 million in 2026 because of these changes.

What It Means

It’s a tough decision, no doubt. As Southwest CEO Bob Jordan said, “This decision is unprecedented. ”

But here’s the thing: it won’t affect pilots or flight attendants. Those front-line workers are safe.

Behind the Scenes

Southwest has faced some serious pressure lately.

Activist investors have been pushing them to reduce costs. Labor costs have also been rising.

Remember that fight with the $69 billion hedge fund? It played a role.

Looking Ahead

Southwest is making other changes too.

They’re even considering overhauling their open seating plan. Imagine assigned seats on Southwest!

Despite all the challenges, Southwest had record revenue in 2024. $27. 4 billion, to be exact.

Change is never easy. But sometimes, it’s necessary.