Southwest Airlines employees fear it's becoming just any other airline: Big job cuts eat away at its culture, they say.

Core Points - Southwest Airlines has conducted its first major layoffs, affecting 1,750 employees, or about 15% of its corporate staff, raising concerns among employees about the potential loss of the company's unique culture [6][8][17] - The layoffs come after an activist investor, Elliott Management, acquired a significant stake in the airline and pushed for operational changes to cut costs and improve profitability [4][16] - Changes include the introduction of assigned seating and premium seating options, marking a departure from Southwest's traditional open-seating policy and one-class cabin approach [5][20] Group 1: Layoffs and Cultural Impact - The layoffs in February are the first mass layoffs in the airline's history since its founding in 1971, affecting teams that contributed to the company's free-spirited culture [2][8] - Employees express concerns that the recent changes could erode the company's storied culture, which has been a key differentiator in the airline industry [10][18] - The hospitality team, responsible for enhancing customer experience, was significantly downsized, which may further impact the company's culture [7][9] Group 2: Activist Investor Influence - Elliott Management's involvement has led to significant changes in the airline's operations, with a focus on cost-cutting and revenue generation [4][16] - The activist investor criticized the airline for not evolving its business practices and product offerings, which has contributed to a decline in stock performance compared to competitors [17] - The company aims to save $510 million over the next two years through these changes, indicating a strong focus on financial performance [18] Group 3: Future Outlook - The introduction of assigned seating and premium cabins is set to begin in the first half of 2026, which may alter customer perceptions of the airline [5][20] - Employees fear that the essence of Southwest Airlines, characterized by its unique culture and customer-friendly policies, may be lost as the company adopts more conventional practices [13][18] - Despite the changes, some employees remain hopeful that the core culture can endure, although the overall sentiment suggests a shift in the company's identity [14][18]