Southwest Airlines is cutting 15% of its workforce in its first-ever mass layoff. Read the CEO's full memo to employees.

Core Viewpoint - Southwest Airlines is implementing a significant workforce reduction of 15%, equating to 1,750 employees, marking the first major layoffs in its 53-year history due to financial challenges and declining profits [1][9]. Financial Impact - The layoffs are expected to save the company approximately $210 million in 2025, excluding severance costs, which may range from$60 to $80 million, and around$300 million in 2026 [1][2]. Strategic Changes - The company is undergoing a comprehensive three-year business transformation plan aimed at boosting revenues, maximizing efficiencies, and optimizing investments [5][13]. - Changes include the end of the open-seating policy to increase seating revenue and a reduction in flight crew positions to cut costs [3][4]. Leadership and Organizational Structure - The layoffs will primarily affect corporate and leadership roles, with a focus on creating a leaner and more efficient organizational structure [7][10]. - The leadership acknowledges the emotional difficulty of the layoffs but emphasizes the need for a more agile company to better serve frontline employees and customers [12][13]. Support for Affected Employees - Affected employees will receive severance packages and support resources, including sessions with HR and outplacement services [11].