Southwest Restructures, Ends Free Checked Baggage Policy

Southwest Airlines is undergoing significant restructuring efforts, impacting its workforce at four major U.S. airports due to overstaffing issues. Approximately 120 jobs, including ground operations and provisioning frontline employees, are being cut at airports in Baltimore, Los Angeles, San Jose, and Burbank, though affected employees can apply for other positions within the company. This move is part of a broader cost-cutting strategy influenced by activist shareholder Elliott Investment Management, which also includes ending Southwest's hallmark free checked baggage policy. In February, Southwest announced its first-ever layoffs, cutting 1,750 jobs in leadership positions, and is now outsourcing skycap services to third-party vendors to further reduce costs. Despite these changes, Southwest reassures that there will be no disruption to services at the affected airports. The company aims to align its workforce with its planned modest growth for 2025 while maintaining operational efficiency.