Dallas-based Southwest Airlines is slashing many of its corporate jobs in a historic move as the company works to reduce costs and make changes.
The airline on Monday announced it is cutting 15 percent of those roles, or 1,750 jobs, which include some leadership positions, Reuters reported.
“This decision is unprecedented in our 53-year history … We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” CEO Bob Jordan explained.
The cuts are expected to be completed by the close of the second quarter. It is estimated the move will save the company millions of dollars.
Southwest Airlines said in April it would begin cutting jobs, no longer operate at four airports, and reduce flights from others to save money as Boeing faces complications, Breitbart News reported at the time:
Southwest Airlines said on Thursday that delays in deliveries from Boeing (Southwest uses Boeing 737 planes) led to its cost-cutting measures, with a “loss of $231 million for the first quarter, worse than analysts expected, sending its share price down 10 percent in early trading,” according to the New York Times.
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Bob Jordan, the airline’s chief executive, said in a statement that the “recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025.”
In July, Southwest Airlines said it was going to “redesign the boarding model” and would no longer offer open seating, per Breitbart News.
“Research conducted by the company found that 80 percent of Southwest customers and 86 percent of potential customers ‘prefer’ an assigned seat,” the report stated.
Regarding the layoffs announcement, an aviation consultant and former Southwest Airlines spokesperson told WFAA, “For more than 50 years we had that claim to fame that, no layoffs, it’s always people first.”
“That’s why I think this is such a big shock in the industry right now,” he added.
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