Southwest Airlines set to cut 1,750 jobs in first-ever layoffs | News.az
For the first time in its 53-year history, Southwest Airlines announced it will be laying off hundreds of workers at its Dallas headquarters.
On Monday, the airline announced it will be laying off 1,750 employees at the company’s Dallas Love Field HQ, News.Az reports, citing US media.
That number equates to around 15% of Southwest’s corporate positions. Among those 1,750 employees, 11 senior leadership positions were eliminated as a result of “restructuring.”
The announcement comes amid a flurry of changes for the Dallas-based airline. Southwest is in the midst of a board shakeup and an aggressive effort to reduce costs. Southwest has also recently announced sweeping changes to its service, including eliminating open seating and offering redeye flights.
“Nobody at headquarters is going to be sleeping well tonight, if they sleep at all,” aviation expert Steve Cosgrove told WFAA. Cosgrove spent Monday night speaking with friends and professional colleagues at the airline.
“They were ordered to leave headquarters at 6pm,” he said. “They’ll report back in the morning… basically be told at that time if they have a job or not.”
Aviation consultant and former Southwest spokesperson Ed Stewart recalled Monday night how Southwest previously boasted about and took such pride in never laying off employees.
“For more than 50 years we had that claim to fame it…was always people first,” he said. “That’s why it’s such a big shock right now in the industry.”
According to Southwest, the move will save the company around $300 million annually moving forward. Will Anderson, the Editor in Chief of the Dallas Business Journal, pointed to the possibility this may not be the end of drastic company changes at the airline.
“CEO Bob Jordan has said he wants to save about $500 million annually,” he said. “So, this gets him part way there, but not all the way.”
“This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions. We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” President, CEO and Vice Chairman of the Board of Directors Bob Jordan said in a statement. “I arrived at this decision thoughtfully and carefully, knowing how hard it will be to say goodbye to colleagues who have been a significant part of our Southwest Culture and accomplishments. I’m grateful to all Southwest Employees who have shared in our legendary history and to those that will guide us into the next era of Southwest Airlines.”
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