Southwest Airlines (WN, Dallas Love Field) has announced a workforce reduction of 1,750 employees as it aims to “create a leaner and more agile organisation” as part of its transformation plan.

The layoffs, set to be completed by the end of the second quarter of 2025, are focused almost entirely on management and leadership positions and represent approximately 15% of corporate positions, including senior leadership and directors. Southwest will eliminate eleven senior leadership positions, also representing 15% of the company’s senior management committee.

Chief executive Bob Jordan said Southwest is at a pivotal moment, unprecedented in its 53-year history. As a result of the cuts, the company estimates savings at around USD210 million in 2025 and USD300 million in 2026.

In November 2024, Southwest offered voluntary redundancies to ground staff at 18 airports across its network and some support staff at its headquarters due to Boeing delivery delays.

Southwest Airlines is undergoing a transformation plan fuelled by 2024’s cooperation agreement between the management and activist investor Elliott Investment Management. Among other changes, the carrier has launched “red-eye” flights from Las Vegas Harry Reid, Los Angeles International, and Phoenix Sky Harbor, and is selling and leasing back part of its B737-800 fleet.