Southwest Airlines announced yesterday a reduction in its staff aimed at streamlining the company structure and increasing organizational agility as part of an ambitious transformation program. The move will affect approximately 1,750 corporate and executive positions, representing approximately 15 percent of the company’s administrative personnel, including senior executives and directors.

According to the official press release, 11 senior management positions (Vice-Presidents and above) will be eliminated, representing 15% of the company's senior management committee. The cuts are expected to be completed by the end of the second quarter of this year. 

Bob Jordan, president, CEO and vice-chairman of the Board of Directors, commented: "This decision, unprecedented in our 53-year history, is the result of careful consideration. We are at a pivotal moment in transforming Southwest Airlines into a leaner, faster and more responsive organization. This is a difficult choice given the importance of our employees who have contributed to our history, but it is necessary as we lead us into the next era". 

Southwest estimates partial savings in fiscal 2025 will be approximately $210 million, and full-year 2026 ones will be approximately $300 million. These economic benefits exclude a one-time expense expected in the first quarter of 2025 of between $60 million and $80 million, primarily for severance and severance pay. One-time costs will vary based on the individual choices of employees involved in the process.

The carrier plans to report further cost-saving measures during 2025.