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The
Dallas-based airline said Monday that the job cuts would be
focused almost entirely on “corporate overhead and leadership
positions,” including senior leadership and directors. Eleven
senior leadership positions, representing 15% of the company's
senior management committee, are being eliminated.
The job cuts, which are scheduled to be mostly completed by the
end of June, are part of a plan by the airline to slash costs
and transform the company into a “leaner, faster, and more agile
organization,” Southwest CEO Bob Jordan said in a statement.
“This decision is unprecedented in our 53-year history, and
change requires that we make difficult decisions," Jordan said.
Southwest estimated that the job cuts will save the company
about $210 million this year and roughly $300 million in 2026.
In November, the airline offered buyouts and extended leaves of
absence to airport workers, including customer service agents,
baggage handlers and cargo workers, in a bid to avoid
“overstaffing in certain locations."
The company has been under pressure from hedge fund Elliott
Investment Management to increase profits and boost the stock
price, which has fallen sharply since early 2021. Southwest
shares are down 9.9% so far this year.
The two sides reached a truce in October to avoid a proxy fight,
but Elliott won several seats on the Southwest board, which it
can use to keep pressure on Jordan and other executives.
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