Southwest (LUV) Airlines announced a reduction in its workforce “to create a leaner and more agile organization as part of the airline’s transformational plan.” The workforce reduction of approximately 1,750 employee roles is focused almost entirely on corporate overhead and leadership positions and represents approximately 15% of corporate positions, including senior leadership and directors. Eleven senior leadership positions, also representing 15% of the company’s senior management committee, will be eliminated as part of this restructuring. Separations will be substantially complete by the end of second quarter 2025. The company estimates partial year 2025 savings to be approximately $210M and full-year 2026 savings to be approximately $300M. These savings exclude an expected one-time charge in Q1 in the range of $60M to $80M. “This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions. We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” said Bob Jordan, CEO.
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