Southwest Airlines Announces First-Ever Mass Layoffs, Cutting 15% of Corporate Workforce

The layoffs, affecting 1,750 employees, are part of a cost-saving transformation plan aimed at creating a leaner and more agile organization.

Southwest Airlines is eliminating 1,750 corporate positions, including 11 senior leadership roles, marking the first mass layoffs in its 53-year history.
The company expects to save $210 million in 2025 and $300 million in 2026 from the layoffs, while incurring a one-time severance cost of $60 to $80 million in the first quarter of 2025.
The layoffs follow pressure from activist investor Elliott Investment Management, which pushed for leadership changes and cost-cutting measures after acquiring a $1.9 billion stake in Southwest.
Southwest is shifting away from its traditional open seating model, introducing assigned seating with premium options, and launching red-eye flights as part of its broader transformation strategy.
The restructuring comes as Southwest faces financial challenges, including rising operational costs, legal issues over delayed flights, and a stock price decline of nearly 10% this year.