Southwest Airlines staff reductions (2): message by its CEO Jordan
Benefits and bonuses for laid-off workers; support for offboarding and outplacement phases; cuts from the end of April
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The workforce reduction plan announced by Southwest Airlines (see AVIONEWS) was accompanied by a second press release in which Robert (Bob) Jordan, President, CEO and Vice-President of the Board of Directors, addressed the staff directly, and in particular the 1,750 affected by the measure. The timing is crucial, the CEO began, as we implement our three-year business plan to transform Southwest Airlines. A transformation plan "the largest and most comprehensive in our 53-year history, which focuses on three simple but critical objectives. First, increase revenue and passenger loyalty by giving our customers the experience they want; second, maximize efficiency and minimize costs; and third, make the most of our investments".
One of the goals, he adds, "will be to maximize efficiency and minimize costs". And, getting to the heart of the matter, Jordan continues: "We have made the difficult decision to proceed with a reduction of our workforce, concentrated almost entirely in business and leadership positions. This reduction affects approximately 1,750 roles, or 15% of company positions. The departures will not begin until late April. Until then, most employees who are notified of their termination will not be working, but will continue to receive their salary, benefits and bonuses, if eligible. This is a huge and very difficult change, and I have come to this decision after careful and deep consideration, knowing how hard it will be to say goodbye to those who have been a significant part of our culture and our successes".
Before concluding the note, the CEO stressed: "it will be tough and we will treat the people we lay off with the care and respect they have earned and deserve". In essence, the employees affected by the measure will receive a severance package and will be offered resources to help them prepare for a future career outside the air company. They will also be supported by a team dedicated to the offboarding phase and guidance towards the desirable relocation one.
AVIONEWS - World Aeronautical Press Agency