Southwest's Big Shake-Up

Dallas Love Field, USATue Feb 18 2025
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Southwest Airlines, a company known for its unique culture and employee-friendly policies, has made a significant change. For the first time in its 53-year history, the airline has decided to lay off 1, 750 employees. This decision is part of a larger restructuring effort to reduce costs and streamline operations. The layoffs will affect around 15% of the company's corporate positions at its headquarters in Dallas. This includes 11 senior leadership roles. The move is expected to save the company around $300 million annually. Southwest is going through a lot of changes right now. The airline is in the middle of a board shakeup and has recently announced major changes to its service. These changes include eliminating open seating and offering redeye flights. These changes might seem small, but they could have a big impact on the company's future. The layoffs are a big deal for the airline industry. Southwest has always prided itself on never laying off employees. This decision is a shock to many in the industry. Aviation expert Steve Cosgrove said, "Nobody at headquarters is going to be sleeping well tonight, if they sleep at all. " Employees were told to leave headquarters at 6 pm on Monday. They will report back in the morning to find out if they still have a job. This is a tough situation for everyone involved. The layoffs are part of a broader effort to reduce costs and streamline operations. The decision to lay off employees is a big change for Southwest. The airline has always been known for its employee-friendly policies. This decision is a big shift from that tradition. Aviation consultant and former Southwest spokesperson Ed Stewart said, "For more than 50 years we had that claim to fame. . . it was always people first. That’s why it’s such a big shock right now in the industry. " The layoffs are part of a broader effort to save money. CEO Bob Jordan has said he wants to save about $500 million annually. The layoffs will save the company around $300 million annually, but that's not enough to reach the goal. This means there could be more changes coming. The layoffs are a big deal for the airline industry. Southwest has always been known for its employee-friendly policies. This decision is a big shift from that tradition. The layoffs are part of a broader effort to save money and streamline operations. The decision to lay off employees is a big change for the airline. The layoffs are part of a broader effort to save money and streamline operations.