Southwest Airlines Faces Mass Layoffs Amid Challenges

Southwest Airlines is undertaking its first large-scale layoff in 53 years, cutting 15% of its corporate workforce, which amounts to approximately 1,750 jobs. The layoffs, set to begin in April 2025, target corporate leadership roles, including 11 senior positions. This restructuring aims to transform Southwest into a leaner and more agile organization, responding to investor pressure for cost-cutting amid operational and financial challenges. The airline anticipates saving $210 million in 2025 and $300 million annually by 2026, despite an expected one-time charge of $60-80 million for severance and benefits. The layoffs come after regulatory and operational issues, including a $140 million fine related to a 2022 incident and ongoing litigation over flight delays. Southwest's restructuring reflects broader industry trends and internal strategic shifts, including the end of its open seating policy and the introduction of new flight services.