Southwest Airlines has prided itself on never laying off employees. Now, for the first time in its 53-year history, that promise is flying out the window.Southwest Airlines will lay off 1,750 employees, or 15% of its corporate workforce. The cuts, starting in April, will include 11 senior leadership positions. The airline expects to save $210 million in 2025 and $300 million in 2026, with severance costs between $60 million and $80 million.CEO Bob Jordan called the move a “monumental shift” as the airline focuses on cost-cutting. The decision follows activist investor pressure, with Elliott Investment Management pushing for leadership and policy changes, including assigned seating instead of the open seating the airline has offered, as well as adding red-eye flights for the first time.Here’s what to know about the Southwest Airlines layoffs and how Arizona flyers could be affected.Why is Southwest Airlines laying off employees?Southwest Airlines is laying off employees as part of efforts to cut costs and restructure operations. The airline has faced financial pressure, with costs rising faster than those of its competitors. Hedge fund Elliott Management, which holds a significant stake in Southwest, criticized the company’s leadership for failing to control expenses and pushed for major changes.Need a break? Play the USA TODAY Daily Crossword Puzzle.”This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions,” Bob Jordan, the president, chief executive officer and vice chairman of the Southwest Airlines board of directors, said in a statement on Feb. 17.”We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster and more agile organization. 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.”Jordan introduced a three-year transformation plan to make the airline leaner and more efficient. The layoffs will mainly affect corporate positions, including 11 senior leaders.The company expects to save $210 million this year and $300 million in 2025 from these cuts.How many corporate employees are at Southwest Airlines?Southwest Airlines employs over 72,000 people. The announcement to lay off 1,750 corporate employees represents approximately 15% of its corporate workforce.What’s happening with Southwest Airlines?The Southwest Airlines layoffs are not targeting customer-facing positions such as flight crews, gate agents or other front-line staff. The airline emphasized its commitment to maintaining safe operations and supporting front-line employees.Southwest has not indicated any plans to reduce the number of flights or alter existing routes.”Most of the affected positions are in Dallas, and there are no operational impacts,” Southwest spokesperson Dan Landson told The Arizona Republic.Got a story you want to share? Reach out at Tiffany.Acosta@gannett.com. Follow @tiffsario on Instagram.Support local journalism and subscribe to azcentral.com. …
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