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Southwest announced the layoffs for about 15 percent of the airline's corporate workforce in a news release on Monday, Feb. 17. The job cuts, which will be finalized by mid-2025, primarily affect corporate leadership and support roles.
Eleven senior leadership positions, including vice presidents and directors, are also being eliminated.
"This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions," said Southwest president and CEO Bob Jordan. "We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization. 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."
The airline estimates the layoffs will save $210 million in 2025 and $300 million annually by 2026. However, Southwest expects to take a one-time charge of $60-80 million in the first quarter of 2025, mostly for severance and post-employment benefits.
The restructuring follows a historic $140 million fine for Southwest's 2022 holiday meltdown that left more than two million travelers stranded. The airline was also sued by the US Department of Transportation in January after it was accused of misleading passengers about chronic flight delays.
Southwest is the latest airline to announce job cuts. Spirit Airlines recently laid off 200 employees amid bankruptcy proceedings.
Southwest said it will provide updates on further cost-cutting measures later in 2025.
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