Southwest to lay off 15% of its corporate staff, including senior leadership

Southwest Airlines said Monday it will cut 15% of its corporate workforce, or 1,750 people — the first involuntary layoffs in the company’s history.

Southwest Airlines said Monday it will cut 15% of its corporate workforce, or 1,750 people — the first mass layoffs in the company’s history. The cuts will start in April and include senior leadership, the company announced. Eleven senior leadership positions, which include vice presidents and above, will be eliminated. Southwest said it expects the layoffs will save the company $210 million this year and $300 million in 2026. It expects a one-time charge between $60 million to $80 million for costs such as severance. “As we continue to work together to transform our Company, an area of intense focus will be maximizing efficiencies and minimizing costs,” Southwest CEO Bob Jordan said in a note to employees Monday. Jordan called the layoffs “a very difficult and monumental shift.” Southwest has had a chaotic few years. Activist investors pointed out last year that the carrier’s share price was down more than 50% from early 2021. It exceeded analyst expectations in its latest earnings released in January but that was because of rising airfares. In June 2024, hedge fund Elliott Investment Management took a $1.9 billion stake in the carrier, calling for a leadership and operations overhaul a few months later.