Southwest Airlines Co. (NYSE: LUV) today announced a significant restructuring as part of its ongoing transformational plan, which includes a reduction of approximately 1,750 employee roles. This move aims to create a leaner and more agile organization, primarily by focusing on corporate overhead and leadership positions.

The reductions represent roughly 15% of the company’s corporate workforce, including senior leadership and directors, and will also eliminate eleven senior leadership positions (Vice President and above), impacting 15% of the senior management committee.

“This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions. We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” said Bob Jordan, President, Chief Executive Officer & Vice Chairman of the Board of Directors. “I arrived at this decision thoughtfully and carefully, knowing how hard it will be to say goodbye to colleagues who have been a significant part of our Southwest Culture and accomplishments. I’m grateful to all Southwest Employees who have shared in our legendary history and to those that will guide us into the next era of Southwest Airlines.”  

As a result of this workforce reduction, the Company estimates partial year 2025 savings to be approximately $210 million and full-year 2026 savings to be approximately $300 million. These savings exclude an expected one-time charge in first quarter 2025 in the range of $60 million to $80 million, substantially all of which is related to severance payments and post-employment benefits, which the Company expects to treat as a special item. One-time costs will vary based on specific Employee elections during the workforce reduction. The Company will continue to report on additional cost-savings actions as 2025 progresses.