Southwest airlines to slash 15% of corporate jobs in ‘unprecedened’ move to cut costs

Southwest airlines Said monday that it is cutting about 15% of corporate jobs, or about 1,750 people, a move its ceo called “unprecedented” as the company scrambles to cut costs.

The company said it expects from the cuts of $ 210 million this year and about $ 300 million in 2026. Ob jordan said in a staff note, Which was seen by cnbc.

“This decision is unprecedented in our 53-year history, and change requires that we make different decisions,” Jordan said in a news release. “We are at a Pivotal Moment as We Transform Southwest Airlines Into A Leaner, Faster, and More Agile Organization.”

Southwest’s Decision to Slash Jobs Comes Several Months after A settlement With Activist Investor Elliot Investment Management, which won five southwest board seats, short of control. The firm had also pushed for jordan to be replaced as ceo, thought it was not successful.

Other Recent Cost-Cutting Measures at Southwest Included A Hiring Freeze, A Pause to the Internet Program and An End to Team-livinging “Rallies,” Rallies, “Rallies,” A Company Tradition Tradition Tradation Tribe DATED BACK to 1985, ReportedIt has also aggressively cut unprofitable routes.

Last Year, Southwest Outlined A Plan to Increase Profits That inclined dits more than 50-year-old open seating model in favor of assigned seats and creating a section with extra legroom. It also also also launched overnight flights for the first time.

“We must ensure we fund the right work, Reduce duplicative efforts, and have a Lean Organizational Structure that Drives Clarity, Pace, and Urgeency,” Jordan Said in his memo on manday.

The layoffs take effect in late April, Jordan said, adding that most affected employers will not work but will serve salary salary, benefits and bonus until this.