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Investing.com-- Southwest Airlines Company (NYSE:LUV) (NYSE: LUV) announced on Monday that it will reduce its workforce by approximately 1,750 positions, primarily in corporate and leadership roles, as part of a broader effort to streamline operations and cut costs.
The move represents about 15% of the company’s corporate workforce, including 11 senior leadership roles at the vice president level and above, the airline said in a statement.
"This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions. We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization," said Bob Jordan, Southwest’s President and CEO.
The job cuts are expected to be largely completed by the end of the second quarter of 2025, the company said. Southwest estimates that the reduction will generate partial-year savings of around $210 million in 2025, with full-year savings reaching approximately $300 million in 2026.
However, the airline anticipates a one-time charge of between $60 million and $80 million in the first quarter of 2025, primarily related to severance payments and post-employment benefits. These costs will be treated as a special item, Southwest noted.
The airline said it will continue to evaluate and implement additional cost-saving measures throughout 2025.
Southwest’s restructuring comes as the airline industry faces ongoing financial pressures, with carriers looking to improve efficiency amid evolving market conditions.