Southwest Airlines eliminating 1,750 jobs

To create a leaner and more agile organization, Southwest Airlines announced on Monday they are planning a workforce reduction as part of the company’s transformation plan.

The workforce reduction of approximately 1,750 employee roles is focused almost entirely on corporate overhead and leadership positions and represents approximately 15% of corporate positions, including senior leadership and directors. Eleven senior leadership positions (Vice President and above), also representing 15% of the company's senior management committee, will be eliminated as part of this restructuring, the airline said in a company press release. The plan is to have the workforce reduction completed by the end of the second quarter of 2025.

Difficult Decisions

Southwest has been under pressure from key shareholders to make big changes in upper-level management.

"This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions,” said Bob Jordan, president, chief executive officer & vice chairman of the Board of Directors. “We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” he added in a statement. “I arrived at this decision thoughtfully and carefully, knowing how hard it will be to say goodbye to colleagues who have been a significant part of our Southwest culture and accomplishments. I'm grateful to all Southwest employees who have shared in our legendary history and to those that will guide us into the next era of Southwest Airlines."  

Cost Saving

As a result of the workforce reduction, the company estimates partial-year 2025 savings to be approximately $210 million and full-year 2026 savings to be approximately $300 million.

These savings exclude an expected one-time charge in the first quarter of 2025 in the range of $60 million to $80 million, substantially all of which is related to severance payments and post-employment benefits, which the company expects to treat as a special item.

The company will continue to report on additional cost-saving actions as 2025 progresses.

In January, the airline announced the sale and leaseback of 36 Boeing 737-800 aircraft to generate cash. That announcement was followed by longtime leaders within the company announcing their retirement.