Southwest Airlines will lay off 1,750 employees at its Dallas headquarters for the first time in its history.
DALLAS — For the first time in its 53-year history, Southwest Airlines announced it will lay off hundreds of workers at its Dallas headquarters.
On Monday, the airline revealed it will cut 1,750 jobs at its Dallas Love Field HQ, representing approximately 15% of the company’s corporate workforce. The layoffs include the elimination of 11 senior leadership positions due to “restructuring.”
This announcement comes amid a series of changes for the Dallas-based airline, including a board shakeup and an aggressive push to reduce costs. Southwest has also made sweeping changes to its services, such as eliminating open seating and introducing redeye flights.
In a follow-up statement, Southwest explained that the layoffs, which will primarily affect corporate and leadership positions, are part of efforts to “boost revenues” and reduce costs. While layoffs won’t take effect until late April, employees notified of their layoff status will not be required to work but will continue to receive their salary, benefits, and bonus (if eligible) until then.
“Nobody at headquarters is going to be sleeping well tonight, if they sleep at all,” aviation expert Steve Cosgrove told WFAA on Monday. Cosgrove spent the evening speaking with airline colleagues.
“They were ordered to leave headquarters at 6 p.m.,” 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 reflected on how Southwest previously took 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 this is such a big shock right now in the industry.”
According to Southwest, the layoffs are expected to save the company around $300 million annually. Will Anderson, Editor in Chief of the Dallas Business Journal, suggested that this may not be the end of the company’s significant changes.
“CEO Bob Jordan has said he wants to save about $500 million annually,” Anderson said. “This gets him part of the way there, but not all the way.”
In a statement, Southwest President, CEO, and Vice Chairman Bob Jordan acknowledged the difficult decision. “This decision is unprecedented in our 53-year history, and change requires us to make tough choices,” Jordan said. “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, knowing how hard it will be to say goodbye to colleagues who have been a significant part of our culture and success. I’m grateful to all Southwest employees who have contributed to our legendary history and to those who will help guide us into the next era of Southwest Airlines.”
