Southwest Airlines announced this week it is laying off 1,750 employees, 15% of its total workforce. This marks the first-ever major layoff in Southwest’s 53-year history.
According to Dallas-based Southwest, the layoffs would focus on senior leadership and directors, so-called “corporate overhead and leadership positions.” The layoffs are scheduled to be completed the end of June. CEO Bob Jordan said in a statement that the move, expected to trim $210 million in 2025 and $300 million next year, is designed to create a “leaner, faster, and more agile organization.”
According to an AP report published by ABC News, Southwest has been under pressure from Elliott Investment management – a hedge fund that now holds several seats on the Southwest board – to increase profits and boost stock price. Southwest stock has fallen “sharply” since early 2021, and shares are down 9.9% this year.
Jordan said, “This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions.”
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