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Southwest Airlines announces leadership changes amid strategic restructuring

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Southwest Airlines announces leadership changes amid strategic restructuring
Policy
Webp received 1198953491793896
xecutive Vice President & Chief Transformation Officer | Southwest Airlines

Southwest Airlines has announced that Ryan Green, its Chief Transformation Officer, will step down from his position effective April 1, 2025. This information was disclosed in a filing with the US Securities and Exchange Commission. Green has been responsible for overseeing transformation initiatives at Southwest, including the rollout of premium seating and the shift to allocated seating.

Green's departure follows significant scrutiny from activist investor Elliott Investment Management. His exit is part of a broader reorganization within the airline influenced by Elliott's involvement in strategic decisions.

In addition to Green's resignation, Southwest Airlines has adjusted its collaboration agreement with Elliott Investment Management. The modification allows Elliott to increase its maximum ownership stake in Southwest from 14.9% to 19.9%, granting the investor more influence over the airline’s direction. This change comes after protracted negotiations and efforts by Southwest to implement Elliott’s proposed changes, such as restructuring the board and leadership.

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Southwest recently announced plans to lay off approximately 1,750 employees or about 15% of its workforce. The company aims to reduce costs and streamline operations amid a competitive aviation market. These organizational changes are intended to position Southwest on a sustainable path forward.

Further leadership changes include the upcoming resignations of board members Eduardo F. Conrado and Elaine Mendoza after the annual shareholder meeting on April 25, 2025. Their departures are part of an agreement made between Southwest and Elliott last October, which will reduce the board size from 15 to 13 members, with five appointed by Elliott.

Ryan Green played a key role in introducing assigned and premium seats at Southwest, marking a shift from its traditional open seating policy—a core aspect of its business model. These changes were announced last summer as part of efforts to adapt to evolving market conditions and accommodate more passengers.

The airline faces increased competition due to rising operational costs and delivery delays from Boeing, its sole aircraft supplier. Additionally, an oversupplied domestic market has challenged Southwest's profitability and competitiveness.

To address these challenges, Southwest is updating its service offerings by eliminating open seating policies and adding more legroom on planes. The airline also plans to introduce "red-eye" flights aimed at attracting business travelers and boosting revenue.

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