Southwest Airlines Announces Job Cuts to Streamline Operations
In an effort to reduce costs, Southwest Airlines will eliminate approximately 15% of its corporate workforce, resulting in the loss of around 1,750 jobs. This reduction includes leadership positions, with 11 senior roles being eliminated.
"This decision is unprecedented in our 53-year history," said CEO Bob Jordan. "We aim to transform Southwest Airlines into a more efficient and agile organization."
The layoffs are expected to generate savings of $210 million in 2023 and $300 million annually by 2026. Southwest expects to complete the job cuts by the end of the second quarter of 2023.
The job cuts are part of a broader plan to improve Southwest's financial performance. In September, the company announced a three-year business strategy that includes partnerships, vacation packages, and aircraft sale-leasebacks.
Southwest's fourth-quarter profits exceeded Wall Street estimates, driven by higher airfares and strong holiday travel demand. However, the company faces challenges in the current economic climate, which has pushed its shares down 10% this year, while competitors Delta Air Lines and United Airlines have experienced gains.