Southwest to lay off 15% of corporate staff amid rising Wall Street pressure to slash costs

Group 1 - Southwest Airlines is cutting 15% of its corporate workforce, affecting 1,750 jobs, including 11 senior leadership positions, to become a "leaner" company [1][6] - The layoffs are part of a transformational plan aimed at reducing overhead costs and improving financial performance, with expected savings of approximately $210 million for fiscal year 2025 and$300 million for fiscal year 2026 [2][4] - The company anticipates incurring $60 million to$80 million in costs related to severance payments and post-employment benefits in the first quarter of fiscal year 2025 [3] Group 2 - The airline is implementing measures to limit discretionary spending, including halting certain corporate events and pausing hiring and summer internships [5] - Southwest aims to achieve a $500 million run rate in savings by 2027 as part of its multi-year financial improvement plan [6] - Upcoming changes include offering assigned seats, evolving the boarding process, introducing premium seating, and starting red-eye flights to maximize aircraft utilization [7]