Southwest Airlines Announces First Layoffs in Its History, Impacting 15% of Corporate Workforce

Southwest Airlines Announces First Layoffs in Its History, Impacting 15% of Corporate Workforce

Southwest Airlines, which has prided itself on never having had an involuntary layoff in its more than 50-year history, is set to reduce about 1,750 jobs within its leadership ranks as part of a cost-cutting effort. This marks the airline's first-ever layoffs.

The job cuts will affect 15% of corporate positions, including senior leadership and directors, with reductions beginning in late April and expected to be “substantially complete” by the end of the second quarter, according to a company statement issued on Monday.

CEO Bob Jordan described the decision as a “very difficult and monumental shift” in a letter to employees. He explained, “With the best intentions, the growth of our leadership and noncontract functions have outpaced our operation’s growth for many years.”

These layoffs are part of the ongoing upheaval Southwest has faced over the past year, which included tensions with activist group Elliott Investment Management, a board reshuffle, and major operational changes. The airline is rethinking its long-standing business model and is introducing premium seating and more legroom options, along with redeye flights.

Southwest has previously refrained from making involuntary layoffs but has taken steps to scale back its workforce. The company paused hiring for management and headquarters positions last month, suspended recruitment of pilots and flight attendants in 2024, and offered voluntary buyouts or extended leave to airport employees in 18 cities, including Los Angeles and Atlanta. Recently, the airline’s finance chief and top administrative officer also announced their retirements.

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