Southwest Airlines Announces Major Workforce Reductions Amid Profitability Challenges

Southwest Airlines announced it will eliminate 1,750 corporate jobs, representing 15% of its workforce, as part of a restructuring plan to save costs. This unprecedented move aims to improve profitability amid pressure from investor Elliott Management and comes as the airline faces financial difficulties. The layoffs will save about $210 million this year, with an estimated $300 million savings projected for 2026. Severance packages will also be provided, costing the company $60 to $80 million. Changes are prompted as part of a broader strategy to make the airline leaner and more efficient amidst industry shifts.