Southwest Airlines has announced plans to cut approximately 1,750 jobs, representing 15 percent of its workforce—the first layoffs in the airline's 53-year history. The chief executive, Bob Jordan, highlighted the need for transformation towards a leaner operation amid investor pressure, specifically from Elliott Management. The layoffs, which include senior leadership positions, aim to save around $210 million this year and further $300 million next year, although significant severance costs will be incurred. Recent strategic changes include assigned seating and added routes to bolster profitability, responding to previous criticism regarding operational complacency.
Southwest Airlines announced plans to cut 1,750 jobs, marking the first layoffs in its 53-year history, focusing primarily on corporate roles.
CEO Bob Jordan described the decision as unprecedented, stating he's transforming the airline into a leaner, faster organization amidst pressure from investors.
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