Southwest Airlines has announced that it is reducing corporate workforce by 15%, cutting approximately 1,750 jobs to streamline operations and lower expenses. The decision, which includes the elimination of 11 senior leadership positions, marks a major shift for the airline as it works to improve its financial standing.
In a report from Reuters, the company expects the layoffs to be mostly completed by the end of the second quarter, with estimated savings of $210 million this year and a projected $300 million in annual savings by 2026. However, a one-time charge of $60 million to $80 million is anticipated in the first quarter of 2025.
CEO Bob Jordan addressed the decision, emphasizing the need for transformation. “This decision is unprecedented in our 53-year history … We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” he said.
In September 2024, Southwest revealed a three-year strategy focused on strengthening its financial position. The plan includes business partnerships, expanded vacation packages, and aircraft sale-leaseback deals, all aimed at generating additional revenue and improving operations.
Southwest Leadership Changes and Market Performance
Alongside these workforce reductions, the airline recently named industry veteran Tom Doxey as its new chief financial officer. He takes over from Tammy Romo, who announced her retirement in January. His appointment comes at a critical time as the company implements major changes to ensure long-term stability.
Despite reporting fourth-quarter earnings that exceeded expectations due to strong holiday travel and improved airfares, Southwest’s stock has declined by about 10% since the start of 2025. Meanwhile, competitors Delta Air Lines and United Airlines have both seen their stock prices rise by more than 7%.
As Southwest Airlines moves forward with these restructuring efforts, it remains focused on improving financial performance while maintaining its market presence.
