Southwest CEO breaks silence after airline plans to axe 1,750 jobs sparking fears routes could be scrapped

THE CEO of Southwest Airlines has broken his silence after the carrier announced a sweeping set of job cuts.

Execs have revealed the company will be undergoing its first mass layoff in the company’s 53 year history.

Southwest Airlines plane taxiing at an airport.

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Southwest Airlines chiefs have announced a sweeping set of job cutsCredit: Getty
Bob Jordan, incoming chief commercial officer of Southwest Airlines, in an interview.

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CEO Bob Jordan spoke of the need to have a ‘lean structure’Credit: Getty

Southwest CEO Bob Jordan explained the decision to cut jobs was “difficult,” as per a statement on The Southwest Airlines website.

Around 1,750 jobs will be eliminated as a consequence.

But, he said the carrier is at a “pivotal moment” in a three-year plan to transform the company.

Jordan outlined three policy areas as part of the plan.

He wants to drive up revenues, maximize efficiencies, and ensure the company is “making the most” of investments.

“This is a very difficult and monumental shift, and I arrived at this decision after careful and thorough reflection, knowing how hard it will be to say goodbye to Cohearts who have been a significant part of our Culture and our accomplishments,” he said.

“Now, this group must become more lean, efficient, and agile to better serve our Frontline Employees in our shared mission of serving our Customers.

Jordan stressed that Southwest had to change so the company could become “agile” in the current environment.

“As we focus on delivering on our plan, our future will be built upon the actions we take today to ensure an even brighter future,” he said.

The workers at risk are corporate employees, meaning pilots and flight attendants will not be impacted.

Jordan admitted Southwest’s overhead had been growing faster than the rest of the business.

Eleven leadership positions are set to be culled and execs believe the restructuring could save up to $210 million this year.

Chiefs predict that around $300 million could be saved next year.

But, officials have stressed that the cuts will not come into force until April.

Southwest CEO’s note to employees

SOUTHWEST Airlines CEO Bob Jordan has announced the company will see a sweeping set of job cuts. In a note, he said:

“Southwest Team:

We are at a pivotal moment as we carry out our three-year business plan to transform Southwest Airlines.

“Our transformational plan is the largest and most comprehensive in our 53-year history, and it focuses on three simple but powerful objectives.

“First, boost revenues and loyalty by offering our Customers the experience they want; second, maximize efficiencies and minimize costs; and third, make the most of our investments.

As we continue to work together to transform our Company, an area of intense focus will be maximizing efficiencies and minimizing costs.

“We must ensure we fund the right work, reduce duplicative efforts, and have a lean organizational structure that drives clarity, pace, and urgency. Improving how we work together and how we get work done has a tremendous impact on our efficiency as a Company and how we deliver against our plan.

We have made the very tough decision to move forward with a reduction in our workforce, focused almost entirely on Corporate and Leadership positions.

“This reduction affects approximately 1,750 Employee roles, or 15% of Corporate positions. Separations do not begin until late April.

“Until then, most Employees who are notified of their displacement will not work but will continue to receive their salary, benefits, and bonus, if eligible.

“This is a very difficult and monumental shift, and I arrived at this decision after careful and thorough reflection, knowing how hard it will be to say goodbye to Cohearts who have been a significant part of our Culture and our accomplishments.

“We are dedicated to operating safely and reliably for our Customers every single day.

“The fundamental objective of Leadership and Noncontract roles is to support our Frontline Employees as efficiently and effectively as possible.

“With the best intentions, the growth of our Leadership and Noncontract functions have outpaced our operation’s growth for many years.

“Now, this group must become more lean, efficient, and agile to better serve our Frontline Employees in our shared mission of serving our Customers.”

Source: Southwest Airlines

However, the layoffs are historic as the company did not have to cut its workforce following 9/11 and Covid-19.

But the layoffs have sparked fears travel routes could be scrapped.

In his statement, Jordan didn’t comment on how the layoffs will impact customers.

But, the total job cuts only represent around 2.5% of the entire Southwest workforce.

Jordan announced the cuts after the company underperformed in the third quarter of last year.

But, the company has rolled out a series of changes.

Southwest’s first five red-eye flights landed on Valentine’s Day.

The routes include: Las Vegas to Baltimore, Las Vegas to Orlando, Los Angeles to Baltimore, Los Angeles to Nashville, and Phoenix to Baltimore.

Southwest bosses have also announced a departure to its open seating policy.

The change will come into force in 2026.

When the policy change was announced, Jordan defended the carrier’s model.

But, he said it needed fixing.

Jordan warned that it would take some time to make the changes.

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