Southwest Airlines (LUV) has announced plans to cut 15% of its corporate jobs, or about 1,750 positions, as the company looks to find cost savings.
The Texas-based company said it expects savings from the job cuts of about $210 million U.S. this year and $300 million U.S. in 2026.
The layoffs will largely be completed by the end of this year’s second quarter and include senior leadership roles, said the airline.
Southwest’s decision to reduce its workforce comes several months after a settlement with activist investor Elliott Management, which has secured five board seats at the carrier.
Other cost-cutting measures undertaken at Southwest in recent months include a hiring freeze, a pause to the internship program, and cuts to unprofitable airline routes.
Last year, Southwest Airlines outlined a plan to increase profits that includes assigned seats and creating a premium section with extra legroom. It has also begun operating overnight flights.
The changes aimed at reducing costs and boosting profits come as Southwest Airlines’ stock has declined since the onset of the Covid-19 pandemic in 2020.
Over the last 12 months, Southwest’s stock has fallen 11% to trade at $30.28 U.S. per share. The stock’s decline over the past five years is now at 46%.
