Southwest Airlines is expected to cut 15% of its corporate workforce, up to 1,750 jobs, in an effort to streamline operations, The Wall Street Journal reported Monday.
The company hasn't conducted a mass layoff in 53 years. But after a recent hiring spree, according to The Journal, the company now faces pressure from investors to slash expenses, even while airlines have seen a recent surge in travel. Other economic pressures, such as inflation and new agreements with trade unions, are also said to be a factor for the cuts.
Southwest Airlines CEO Bob Jordan commented that cutting staff is a "difficult and monumental shift," but corporate overhead has been running too high.
"We must ensure we fund the right work, reduce duplicative efforts, and have a lean organizational structure that drives clarity, pace, and urgency," Jordan noted in a memo to employees.
The layoffs are set to take effect in late April. Most of the affected employees will continue to receive salaries, benefits, and bonuses until their separation. Front-line workers, such as pilots and flight attendants, will not be affected by the cuts.
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Nick Koutsobinas, a Newsmax writer, has years of news reporting experience. A graduate from Missouri State University’s philosophy program, he focuses on exposing corruption and censorship.
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