Dallas-based Southwest Airlines announces mass layoffs, cutting 15% of corporate workforce
DALLAS — Southwest Airlines has announced an "unprecedented" mass layoff, cutting over 1,700 jobs.
Monday, Southwest announced it is cutting 15% of its corporate and leadership workforce.
"This decision is unprecedented in our 53-year history," Southwest President and CEO Bob Jordan said in a statement.
Southwest said the 1,750 layoffs won't start until late April. Southwest said most employees who are notified of their "displacement" will not continue to work but will continue to receive salary, benefits and bonus, if eligible, until April.
"This is a very difficult and monumental shift, and I arrived at this decision after careful and thorough reflection, knowing how hard it will be to say goodbye to Cohearts who have been a significant part of our Culture and our accomplishments," Jordan said. "We are building a leaner organization with increased clarity regarding what is most important, quicker decision making, and a focus on getting the right things done with urgency—not unlike our entrepreneurial founding spirit of the 1970s."
Investors have been pressuring Southwest's leadership to find ways to cut costs.
The company said that, as a result of the layoffs, it will save roughly $210 million in the remainder of 2025 and approximately $300 million in 2026.
The announcement comes amid a board shakeup and increased focus on cutting costs, like adopting an assigned seating policy.
The Transportation Department also filed suit against the airline company last month over chronically delayed flights.
2.5% of Southwest Airlines affected
This layoff of 1,750 corporate-level positions sounds like a lot; however, it's only 2.5% of Southwest Airlines' workforce of 72,000. Eleven of the positions cut were vice president level or higher.
Southwest mentions in its news release that the layoffs will come with severance packages and post-employment benefits.
Will this impact airline passengers?
Southwest did not address any impact to customers in its announcement, but since the layoffs affect corporate and leadership roles rather than ticket agents or flight attendants, pilots or ground crews, they shouldn't impact flight operations at Dallas' Love Field or other airports.
What do we know about more possible cuts?
Unions that CBS News Texas spoke to said they do not expect any effort by Southwest to make cuts to the labor force.
There have been rumblings about Southwest's corporate cuts since the last earnings report; however, since the airline is based in Dallas, it's presumed many of the 1,750 laid off will come from the corporate headquarters in Dallas.
