- Southwest Airlines reduces 15% of its business workforce, or 1,750 employees, said the carrier.
- These are the first major layoffs in the 53 years of Southwest History and come in the midst of profitability problems.
- Read the full message of CEO Bob Jordan on Monday to employees.
Southwest Airlines said on Monday that it reduced 15% of its business workforce, or 1,750 employees.
Cups are the first major dismissals in the history of the 53 years of the Southwest and the last response of the airline to the company’s financial problems while its profits plunge.
The carrier declared that layoffs will help the company save around $ 210 million in 2025 – excluding departure packages and post -employee services, which could cost the company from 60 to 80 million Dollars – and around $ 300 million in 2026.
The president and chief executive officer of the Southwest, Bob Jordan, said that the Severances would take effect at the end of April and that the workers had an impact on wages, benefits and bonuses until then.
Elliott Investment Management, an activist company that took a participation in Southwest in June, put pressure on changes from the carrier, including a restructuring of its board of directors and updates to its commercial model.
Southwest said in July that he planned to end his longtime policy at the opening to generate more seats. The company also reduced driving crew stations in Atlanta last year to reduce costs.
Southwest is not the only low -budget airline to take desperate cost reduction measures in a changing industry.
Spirit Airlines, for example, said in July that it would begin to bring together A-La-Carte articles such as snacks and checkered bags to target premium passengers.
JetBlue Airways said the same month that it would delay the delivery of more than 40 jets to the airline fleet until 2030 or later.
Competitors at low cost Frontier Airlines have also made changes, such as adding a new business type cabin with a blocked central seat to attract more customers.
Read the full message of the Southwest CEO, Bob Jordan to employees on Monday:
Southwest team: We are at a pivotal moment when we make our three -year business plan to transform Southwest Airlines. Our transformational plan is the largest and most complete in our 53 -year history, and it focuses on three simple but powerful objectives. First of all, increase income and loyalty by offering our customers the experience they wish; Second, maximize efficiency and minimize costs; And thirdly, take advantage of our investments. While we continue to work together to transform our business, an intense installation area will maximize efficiency and minimize costs. We must make sure to finance the right job, reduce duplication efforts and have a lean organizational structure that stimulates clarity, pace and urgency. Improving the way we work together and how we do the work has a huge impact on our effectiveness as a business and how we deliver in relation to our plan. We made the decision very difficult to move forward with a reduction in our workforce, focused almost entirely on business and leadership stations. This reduction affects approximately 1,750 employee roles, or 15% of business stations. The separations did not start until the end of April. Until then, most employees who are informed of their trip will not work but will continue to receive their salary, their benefits and their premium, if they are eligible. This is a very difficult and monumental change, and I came to this decision after a meticulous and in -depth reflection, knowing how difficult it will be to say goodbye to the cohearts which were an important part of our culture and of our achievements. We undertake to operate safely and reliably for our customers every day. The fundamental objective of leadership and non-contract roles is to support our front-line employees as effectively and effectively as possible. With the best intentions, the growth of our leadership and non-contract functions exceeded the growth of our operation for many years. Now, this group must become leaner, efficient and agile to better serve our front -line employees in our joint mission to serve our customers. What to expect It will be difficult, and we will treat our people with the care and respect they have won and they deserve. Impacted employees will receive a starting indemnity and will be offered resources to offer the possibility of asking questions and preparing for the future, such as sessions with human resources business partners, a support team dedicated to setting in place and outplacement services. Front It was an extremely difficult decision to make because of its impact on our people – both those who will be directly affected and those who remain. Changing the way we work is an essential element to become a more agile business, and it will be a trip. We build a leaner organization with increased clarity concerning what is most important, faster decision -making and the emphasis on the right situation with the emergency – not unlike our entrepreneurial founding spirit of the 1970s. So then That we focus on the supply of our plan, our future will be built on the actions that we take today to ensure an even brighter future.
Are you one of the southwest employees who was dismissed? If so, contact the senior aviation journalist Senior Taylor Rains on a non -work device at Train@businessinsider.com.
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