Southwest Airlines is cutting 15% of its corporate workforce, or 1,750 employees, the carrier announced. These are the first major layoffs in the airline’s 53-year history and come as the company faces financial challenges. The layoffs are expected to save the company about $210 million in 2025, excluding severance packages and post-employment benefits, which could cost between $60 to $80 million, and around $300 million in 2026. Southwest President and CEO Bob Jordan said the severances would take effect in late April, and affected workers would keep their pay, benefits, and bonuses until then. The decision comes as the airline responds to pressure from Elliott Investment Management, an activist firm that took a stake in Southwest in June, pushing for changes including a restructuring of the board and updates to the business model. Southwest also plans to end its long-standing open-seating policy to generate more seating revenue and has reduced flight crew positions in Atlanta to cut costs. Other budget airlines, such as Spirit Airlines and JetBlue Airways, have also taken cost-cutting measures. Spirit Airlines will start bundling previously a-la-carte items like snacks and checked bags, while JetBlue Airways will delay delivering more than 40 jets to its fleet until 2030 or later. Frontier Airlines has added a new business-class-like cabin with a blocked middle seat to attract more customers. — news from Business Insider
