Southwest Air Announces First Mass Layoff in Company History

Southwest Airlines is laying off 1,750 corporate employees, marking the first mass layoffs in its 53-year history. The airline blames rising costs and the need for restructuring to stay competitive.

Key Facts

Southwest is cutting 15% of its corporate workforce, with layoffs mostly completed by the end of Q2.
CEO Bob Jordan called the move “unprecedented” and said it is necessary to create a leaner, more agile airline.
The company expects $210 million in savings this year and $300 million in 2026 from job cuts.
The layoffs follow pressure from activist investor Elliott Investment Management, which secured five board seats.
Other cost-cutting measures include a hiring freeze, eliminating team-building events, and cutting unprofitable routes.

The Rest of The Story

Southwest’s decision to slash jobs is a major shift for the airline, which has never conducted mass layoffs before.

The company has been under growing financial pressure, leading to cost-cutting measures beyond job reductions.

These include pausing internships, freezing hiring, and ending long-standing company traditions like team-building rallies.

CEO Bob Jordan acknowledged the difficulty of the decision but stressed that the airline must become more efficient to remain competitive.

The cuts come after activist investor Elliott Investment Management took five board seats and pushed for major changes, including a failed attempt to replace Jordan.

Southwest is also making operational adjustments to boost profits.

The airline recently announced plans to introduce assigned seating and a premium section with extra legroom, ending its decades-old open-seating policy.

Additionally, it has begun offering overnight flights for the first time to expand its network.

Southwest Airlines will cut about 1,750 jobs in its leadership ranks, a dramatic step to reduce expenses that mark the first layoffs in the carrier’s history. https://t.co/clCmZ3jDVO

— Bloomberg (@business) February 17, 2025

Commentary

Southwest’s financial troubles are not happening in a vacuum.

They are yet another consequence of the economic policies that have defined the last few years—policies that have driven inflation to historic levels, increased labor costs, and made it harder for businesses to operate efficiently.

When inflation surged under Biden’s administration, companies across industries were forced to cut expenses, and now, even one of the most resilient airlines in America is making drastic moves.

The airline’s struggles reflect a broader economic reality: Bidenomics has failed.

High fuel costs, expensive wages, and burdensome regulations have squeezed the airline industry, forcing companies to find ways to survive.

Southwest’s decision to eliminate jobs and cut back on services is proof that even major businesses are struggling under this weight.

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However, the good news is that change is coming.

With Trump back in office, expectations are high for a return to pro-business policies that reduce inflation, lower energy costs, and create a stable economic environment.

If the new administration implements lower taxes, reduced regulations, and an energy policy that prioritizes American production, companies like Southwest may have a chance to recover.

If history is any indication, a pro-growth approach will help airlines, businesses, and American workers alike.

Southwest’s layoffs may be painful now, but with the right economic policies in place, this trend could be reversed in the coming years.

The Bottom Line

Southwest’s layoffs mark a major shift for the airline and signal deeper economic troubles across corporate America.

The company is making tough choices to stay afloat in a difficult business climate, but these problems are largely the result of bad economic policies.

With Trump back in office, businesses may soon find relief, and layoffs like this could become a thing of the past.