Southwest to Cut 15 Percent of Corporate Workforce

Southwest Airlines on Monday evening announced a 15 percent reduction in its "corporate overhead workforce," including senior leadership and directors, a move set to affect approximately 1,750 employees. 

Eleven members of Southwest's senior leadership, holding titles of vice president and above and representing 15 percent of the company's senior management committee, are part of the downsizing, according to Southwest. 

The carrier said that the layoffs will be "substantially complete" by the end of the second quarter.

"This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions," Southwest president and CEO Bob Jordan said in a statement. "We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization."

According to an email from a Southwest spokesperson, the carrier has "no plans to change our focus areas within Southwest Business, including ensuring we're servicing our business travel Customers with the Heart and Hospitality they've come to know and love about Southwest."

The carrier declined to provide additional details about the layoffs.

Southwest estimates that the cuts will generate about $210 million in partial-year 2025 savings with full-year 2026 savings of about $300 million.

Southwest's profits remain down significantly from 2019 levels, and activist investor Elliott Management for several months last year pushed to change the airline's leadership. In October, the carrier and Elliott came to an agreement that avoided a proxy battle, and Southwest announced six new directors, with former Southwest CEO Gary Kelly stepping down from the board.

Southwest also is making changes to its operations, with the launch of red-eye flying earlier this month and upcoming assigned seats and seats with extra legroom.

 Southwest's Promised Changes Are Afoot, But Will They Be Enough?