Southwest Airways, by 15% of company jobs in “unprecedented” transfer to cut back the prices

A Southwest Airlines Boeing 737 passenger aircraft at the asphalt on the Ronald Reagan Washington National Airport (DCA) in Arlington, Virginia, on December 13, 2024.

Daniel Slim | AFP | Getty pictures

Southwest Airlines Said on Monday that around 15% of corporate jobs or about 1,750 people delivered a move of his CEO called “unprecedented” while the company lowers the costs.

The company expects savings from the cuts of 210 million US dollars this year and in 2026 around 300 million dollars. The layoffs are mainly carried out by the end of the second quarter and include some leadership roles, said CEO Bob Jordan in a letter of staff. what was seen by CNBC.

“This decision is unprecedented in our 53-year history, and changes requires that we make difficult decisions,” said Jordan in a press release. “We are at a crucial moment when we transform Southwest Airlines into slimmer, faster and more agile organization.”

Southwest's decision to reduce jobs is made a few months after an agreement with the activist investor Elliott Investment Management, who won five seats of the Southwest Board, shortly before the check. The company had also pushed that Jordan was replaced as a CEO even though it was not successful.

The other recently performed cost reduction measures in the southwest included a setting offer, a break from the internship program and an end to team education “Rallies”, a corporate tradition that was due to 1985, previously reported. It also cut aggressively unprofitable paths.

Last year, Southwest outlined a plan to increase profits, which contained his more than 50 -year -old open seat model for assigned seats and the creation of a section with additional legroom. It was recently introduced over night flights for the first time.

“We have to make sure that we finance the right work, reduce the double effort and have a slim organizational structure that promotes clarity, pace and urgency,” said Jordan on Monday in his memo.

The layoffs will come into force at the end of April, said Jordan and added that most affected employees do not work, but still received salary, services and bonus until then.