Southwest Airlines Announces First Major Layoffs In 53-Year History; To Cut 15% Of Corporate Jobs

(RTTNews) - Southwest Airlines Co. announced a significant reduction in its workforce as part of a transformational plan to create a leaner, more agile organization. Approximately 1,750 roles, primarily within corporate overhead and leadership positions, will be eliminated, representing around 15% of corporate positions, including senior leadership and directors. Notably, 11 senior leadership roles (Vice President and above) will be cut, constituting 15% of the Company's senior management committee.

The layoffs will not begin until late April. Until then, most employees who are notified of their displacement will not work but will continue to receive their salary, benefits, and, if eligible, bonuses. The layoffs will be substantially complete by the end of the second quarter of 2025.

As a result of the workforce reduction, Southwest Airlines estimates partial year 2025 savings to be about $210 million and full-year 2026 savings to be approximately $300 million. The savings exclude an expected one-time charge in the first quarter of 2025 in the range of $60 million to $80 million, substantially all of which is related to severance payments and post-employment benefits, which the company expects to treat as a special item. One-time costs will vary based on specific employee elections during the workforce reduction. The company will continue to report on additional cost-saving actions as 2025 progresses.