Southwest Airlines restructures workforce amid investor pressure

- Baltimore/Washington International Thurgood Marshall Airport (BWI)

- Los Angeles International Airport (LAX)

- San Jose Mineta International Airport (SJC)

- Hollywood Burbank Airport (BUR)

A memo obtained by WFAA disclosed that staffing reductions would affect Ground Operations and Provisioning Frontline Employees at these sites. Various factors have slowed capacity restoration and growth plans, leading to the overstaffing situation.

Southwest assures that all affected employees will have opportunities to remain with the company. "We always try to minimize the impact to our Employees," said a representative from the airline.

Elliott Management has been advocating for significant changes within Southwest Airlines in hopes of boosting profitability through cost-cutting measures and leadership adjustments. CNBC reported in January 2025 that an internal memo revealed suspensions on corporate hiring and promotions, summer internships, and employee gatherings as part of these efforts.

Bob Jordan, President and CEO of Southwest Airlines, emphasized fiscal responsibility: "Every single dollar mattered as the company continued to claw back to better financial performance. "

In addition to workforce restructuring, Southwest announced it would begin charging passengers for checked bags—a first in its history—and introducing basic economy fares starting May 28.

Despite these changes, Southwest's full-year financial results for 2024 were promising. The airline reported a net income of $261 million for Q4 2024 and $465 million for the full year. Revenues reached $6.9 billion in Q4 and $27.5 billion annually with liquidity standing at $9.7 billion against a debt of $6.7 billion.

Jordan acknowledged there is still much work ahead but noted rapid progress: "Based on confidence in our performance and outlook, we are launching a $750 million accelerated share repurchase with an initial $250 million already complete."