For the first time in its 53-year existence, Southwest Airlines has begun laying off workers. The Dallas-based carrier confirmed plans to eliminate 1,750 corporate positions at its Love Field headquarters, a move that includes cutting 11 senior leadership roles.
The reductions represent roughly 15% of the company’s corporate staff, though Southwest’s total workforce exceeds 72,000 employees. CEO Bob Jordan called the decision unprecedented and framed it as part of a broader transformation toward a leaner, faster organizational structure.
Cost pressures drove the decision. A fourth-quarter earnings report revealed labor expenses kept climbing despite a hiring freeze that already targeted management, headquarters staff, and outside contractors. The airline now expects the layoffs to wrap up by the end of the second quarter, generating $210 million in savings for the remainder of 2025 and $300 million in 2026. Severance and post-employment benefits will trigger a one-time charge between $60 million and $80 million in the first quarter.
Affected employees won’t officially separate until April. However, the company said they will continue receiving pay and benefits without reporting to work until that date.
The cuts follow other major shifts at the airline, which remains the largest carrier at both San Antonio International Airport and Austin Bergstrom International Airport. Southwest has already abandoned several signature policies, including open seating, while introducing premium seats with extra legroom and redeye flights. Last November, the company offered buyouts and extended leaves to airport workers across 18 cities to address what it described as overstaffing.
Wall Street pressure has mounted on Southwest for years. Its stock price has tumbled since early 2021 and is down 10% so far this year. A contentious battle with activist investor Elliott Investment Management ended with Southwest adding five Elliott-appointed members to its 13-person board. Jordan acknowledged that leadership and noncontract functions grew faster than operations for years, and said the corporate structure must now become more efficient to support frontline employees.
The layoffs mark a radical departure for a business that long prided itself on never furloughing or laying off staff. As Southwest navigates investor demands and shifting market dynamics, the workforce reductions signal a fundamental break from its historical approach to labor relations.
