For the first time in its 53-year history, Southwest Airlines has announced mass layoffs, cutting 15% of its corporate workforce. This decision comes as part of a cost-saving initiative, with approximately 1,750 jobs affected. While frontline workers like pilots and flight attendants are not impacted, the layoffs will significantly reshape the company’s corporate structure and leadership.
Details of the Layoffs
On February 17, 2025, Southwest Airlines confirmed that it will reduce its corporate workforce by 15%, citing financial pressures and the need for restructuring. The affected positions primarily include corporate and leadership roles, with 11 senior executive positions being eliminated.
- Total jobs affected: 1,750 corporate employees
- Frontline workers: Not impacted
- Leadership positions cut: 11 senior executive roles
This marks a major shift for the Dallas-based airline, which has never before resorted to involuntary job cuts.
Financial Impact and Cost Savings
The layoffs are part of a larger cost-cutting strategy to improve efficiency and profitability. Southwest Airlines expects:
- $210 million in savings for 2025
- $300 million in annual savings by 2026
- A one-time severance cost of $60–$80 million in Q1 2025
The company has also implemented other cost-saving measures, including:
- Pausing corporate hiring
- Suspending promotions and summer internships
- Offering voluntary buyouts and extended leaves for airport workers
Why is Southwest Cutting Jobs?
The layoffs are driven by financial struggles and pressure from investors, particularly Elliott Investment Management, a hedge fund that has been pushing for stronger profitability and stock performance.
Southwest has faced increased competition, higher operational costs, and weaker financial results in recent months. The move is part of a broader strategy to streamline operations and improve efficiency.
CEO Bob Jordan stated:
“This was an incredibly difficult decision, but we must make tough choices to position Southwest for a stronger future. We are focused on creating a leaner, faster, and more agile organization.”
Impact on Employees and Operations
- Employees affected will receive severance packages, career support, and outplacement services.
- Southwest has assured that customer service and flight operations will not be affected.
- The layoffs will be fully implemented by June 2025.