Southwest Airlines announced a significant reduction in its corporate workforce, cutting 1,750 positions by the end of the second quarter of 2025. This move will reduce the company’s leadership and corporate roles by 15%, including the elimination of 11 senior leadership roles at the Vice President level and above.
Bob Jordan, Southwest’s President, CEO, and Vice Chairman of the Board of Directors, described this decision as unprecedented in the airline’s history. He stated: “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.”
The job cuts are expected to begin in April. The company anticipates partial-year savings for 2025 to be around $210 million and full-year savings for 2026 approximately $300 million. These savings exclude an estimated one-time charge between $60 million and $80 million in early 2025 related to severance payments and post-employment benefits.
Jordan also communicated with employees about transforming Southwest into a leaner organization focused on boosting customer revenues, maximizing efficiencies, minimizing costs, and enhancing investment returns. He emphasized: “Changing how we work is an essential part of becoming a more agile Company…We are building a leaner organization with increased clarity regarding what is most important.”
The affected employees will receive support during their transition period through resources like sessions with Human Resource Business partners and outplacement services.
This announcement follows recent developments involving Elliott Investment Management gaining influence on Southwest’s board after appointing five representatives last year. Despite pressure from Elliott for leadership changes, Bob Jordan remains in his role.
