Survival Strategy of SouthWest Airlines: 1,750 Corporate Jobs to be renounced this year

The first ever significant layoffs were announced by the SouthWest Airlines on Monday as a part of financial pressures and strategic initiatives which will be made effective in the second half of the year before the end of 2025. This layoff will chop off 1,750 corporate jobs which represents 15% of its corporate workforce including eleven top leadership roles. The company expects that this could save £166.64 million in 2025 and in 2026 it can become upto  £238.06 million. 

“The strategic vision announced today is designed to return us to financial prosperity and drive value creation. We have a clear and measurable path that we expect will enable us to cover our WACC in 2026 and achieve after-tax ROIC of at least 15 percent in 2027” said Executive, VP, & Chief Financial Officer, Tammy Romo.

• Strategic Restructuring Plan
• Operational Adjustments
• Financial Performance and Investor Pressure

These are the key factors which forced the leading airline company to cut off certain designations in their 53 years of history.

“We’re now ushering in a new era at Southwest, moving swiftly an deliberately to transform the Company by elevating the Customer experience, improving financial performance, and driving sustainable Shareholder value” – Bob Jordan, President, CEO, VC, SouthWest Airlines.

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