The reductions start in late April and will be “substantially complete” by the end of the second quarter. — Bloomberg
NEW YORK: Southwest Airlines Co will cut about 1,750 jobs in its leadership ranks, a dramatic step to reduce expenses that mark the first layoffs in the carrier’s history.
The pullback will impact 15% of corporate positions, including senior leadership and directors, the airline said in a statement. The reductions start in late April and will be “substantially complete” by the end of the second quarter.
“This is a very difficult and monumental shift,” chief executive officer Bob Jordan said in a letter to workers. “With the best intentions, the growth of our leadership and non-contract functions have outpaced our operation’s growth for many years.”
The job cuts extend the upheaval that has gripped Southwest for much of the past year, which featured a battle with activist Elliott Investment Management, a board overhaul and significant operational changes.
The airline is rethinking its long-held and famous one-size-fits-all business model, and will offer premium seats and some with more legroom after just beginning redeye flights.
Southwest has long boasted of never having an involuntary layoff. — Bloomberg
