Dallas-based Southwest Airlines announced Monday that it鈥檚 laying off 15% of its corporate employees.
About 1,750 employees will be affected, according to from the airline. Eligible employees will continue to receive salary and benefits until April. They鈥檒l also receive severance pay and help to find new jobs.
Southwest CEO Robert Jordan called the layoffs an 鈥渆xtremely difficult decision."
鈥淲ith the best intentions, the growth of our Leadership and Noncontract functions have outpaced our operation's growth for many years,鈥� Jordan said in a statement posted to the company鈥檚 website. 鈥淣ow, this group must become more lean, efficient, and agile to better serve our Frontline Employees in our shared mission of serving our Customers.鈥�
The company lists minimizing costs and increasing efficiencies as reasons for the layoffs.
Southwest has faced financial and legal challenges in recent months. The company posted lower-than-expected earnings in its 3rd quarter of 2024.
鈥淚 want to acknowledge that recent financial performance is not up to your or to my expectations,鈥� Jordan told investors in September.
The U.S. Department of Transportation sued Southwest for illegally operating multiple chronically delayed flights, according to a lawsuit filed . Between April and July of 2022, an investigation found one Southwest flight between Chicago Midway and Oakland, California was late between 59% and 76% of the time. The suit alleged Southwest did not adjust its schedule during that time.
鈥淎irlines have a legal obligation to ensure that their flight schedules provide travelers with realistic departure and arrival times,鈥� said U.S. Transportation Secretary Pete Buttigieg.
Southwest said it鈥檚 鈥渄isappointed鈥� over the department鈥檚 suit for flights that occurred more than two years ago.
The airline announced restructuring of its board in October as part of a settlement with The firm previously pressured Jordan to resign. He said in June that his leadership team had plans to boost the airline鈥檚 financial performance. The company announced initiatives to boost revenue, including assigned seating.
Regarding the layoffs, Jordan said in the airline鈥檚 press release that they鈥檙e necessary to help the company move forward.
鈥淲e are building a leaner organization with increased clarity regarding what is most important, quicker decision making, and a focus on getting the right things done with urgency,鈥� he said.
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