Southwest Airlines To Slash 15% Of Workforce Amid Push For Profitability — 1,750 Corporate Roles Axed

Southwest Airlines Co. LUV announced Monday it will eliminate approximately 1,750 corporate positions, marking the first large-scale layoff in the carrier’s 53-year history as it seeks to streamline operations and boost profitability.

What Happened: The 15% reduction in the corporate workforce is expected to generate savings of $210 million in 2025 and approximately $300 million in 2026. The cuts, which include senior leadership roles, will be largely completed by the end of the second quarter.

“We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” CEO Bob Jordan said in a news release. The move follows recent pressure from activist investor Elliott Investment Management, which secured five board seats after pushing for leadership changes.

See Also: Robert Kiyosaki Predicts Wall Street Crash and Layoffs: ‘Prepare for Market Crash, Depression and War’

Why It Matters: The airline has already implemented other cost-cutting measures, including a hiring freeze and route optimization. Southwest is also departing from its traditional open seating model and introducing assigned seating with premium legroom options.

Affected employees will retain their salary, benefits, and bonus eligibility through late April, though most will cease working immediately.

Southwest Airlines shares are up 1.39%, trading at $30.70 in Robinhood’s overnight session.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.