Southwest Airlines Announces Historic Company-Wide Layoff

That's right, over 1,000 Southwest employees will be laid off at their headquarters in Dallas, according to a recent announcement made by the major airline company.

Southwest Layovers and Layoffs

The announcement came Monday when the airline stated they will be laying off 1,750, or 15%, of their employees on the corporate level at the Dallas Love Field HQ.

In what they call "restructuring," according to WFAA, 11 senior leadership positions were also included in the elimination.

According to the news release, this decision is focused mostly on corporate and leadership positions and will save the company about $210 million in 2025, and about $300 million starting 2026.

President and CEO Bob Jordan emphasized the historic impact this has on the company.

This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions

Severance pay and post-employment benefits for all employees removed from the company is expected to hover around $60 million to $80 million.

WFAA spoke with Steve Cosgrove, an aviation expert, about the decision. "They were ordered to leave headquarters at 6 p.m [on Monday, Feb. 17]. They'll report back in the morning... basically be told at that time if they have a job or not."

Recent Changes with Southwest Airlines

This huge decision comes just after the company's recent announcement that they will be eliminating their open seating policy. This was decided after the airline received feedback from consumers who actually said they prefer assigned seating over the open-style structure they were known for for so long.

According to the release from July 2024, research showed that 80% of Southwest customers are pro-assigned seats. In fact, when customers switch from Southwest to another airline, the leading reason as to why is because of the seating policy.

So, let's see how this new era of Southwest Airlines will positive or negative for the company and especially for us customers.