Southwest Airlines on Monday announced plans to cut 1,750 jobs, the first broad layoffs in the airline’s 53-year history. The company said the cuts would mostly focus on corporate positions, accounting for about 15 percent of that workforce. The layoffs will include 11 senior leaders with titles of vice president or higher, the airline said. Most of the cuts will be carried out by the end of June. In a statement, Southwest’s chief executive, Bob Jordan, called the decision “unprecedented.” He said, “We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster and more agile organization. I arrived at this decision thoughtfully and carefully, knowing how hard it will be to say goodbye to colleagues who have been a significant part of our Southwest culture and accomplishments.” The decision comes after Southwest’s board of directors, led by CEO Bob Jordan, implemented a three-year plan to make sweeping changes to the airline’s operations and policies, including dropping its seat-yourself policy in favor of assigned seating, adding seats with extra legroom, and introducing red-eye flights. The job cuts are expected to save the airline about $210 million this calendar year and $300 million next year, but will also incur a one-time cost of $60 million to $80 million to pay out severance and other benefits to laid-off workers.
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