by Lacey Pfalz
Last updated: 9:20 AM ET, Tue February 18, 2025
Southwest Airlines has announced it will be laying off 1,750 corporate employees, which is about 15 percent of its corporate workforce, in an effort to save money and restructure its business, with eleven senior leadership positions from Vice President and above also being eliminated.
The layoffs will be completed now through the end of the second quarter of the year.
The air carrier, which struggled to turn a profit last year, has experienced some business drama: Elliott Management, which owns 10 percent of the airline, has repeatedly called for the current CEO, Robert Jordan, to step down, and wrote lists of new action plans detailing how the airline could once more become profitable.
It also created a new business plan last fall to help accelerate more positive results.
Still, it exceeded expert predictions when it reported its fourth quarter results, rising above the projected 0.44 cents per share in earnings to return 0.56 cents per share to shareholders. Revenue also rose 1.6 percent from 2023.
The 15 percent reduction in corporate employees is estimated to save around $210 million for the partial year 2025 and $300 million in savings for the full-year 2026. Southwest will pay out severance and post-employment benefits for an estimated $60 to $80 million.
"This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions. We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization," said Bob Jordan, President, Chief Executive Officer & Vice Chairman of the Board of Directors. "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."
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