When The HR Digest interviewed Julie Weber, former Vice President and Chief of People at Southwest Airlines, one thing was clear; the airline prided itself on wearing its heart on its sleeve (or wings, might we say). For decades, Southwest Airlines has reigned as a bastion of stability, with its ‘employee-first’ philosophy inspiring a generation of HR professionals and fueling countless success stories. But on Monday, that legacy received a devasting blow as Southwest Airlines layoffs in 2025 grabbed headlines all over the nation.
The Dallas-based airline announced a sweeping 15% reduction in its corporate workforce, marking the first large-scale layoffs in over a century. The Southwest Airlines job cuts in 2025 have sent shockwaves across the industry, as America’s most beloved airline known for prioritizing employees even in times of economic hardship, joins the rank of companies to do layoffs in 2025.
Southwest Airlines’ layoffs: Who is affected?
The Southwest Airlines layoffs will affect primarily “corporate overhead and leadership positions,” including senior leadership and directors. Eleven senior leadership positions, representing 15% of the company’s senior management committee, including vice presidents and above, will be eliminated.
Southwest Airlines’ layoffs will save the company $210 million in 2025 and $300 million in 2026.
The Southwest Airlines’ job losses are scheduled to be mostly completed by the end of June. The airline plans to cut costs and transform the company into a “leaner, faster, and more agile organization,” Southwest CEO Bob Jordan said in a statement.
The corporate shakeup will save the company $210 million this year and $300 million in 2026. It expects a one-time charge between $60 million to $80 million for costs such as severance.
What led to the decision?
In November, Southwest Airlines attempted to stave off layoffs by offering buyouts and extended leaves of absence to airport workers, including customer service agents, baggage handlers, and cargo workers, in a bid to prevent “overstaffing in certain locations”.
However, these efforts were not enough to shield the airline from the financial pressures that culminated in the Southwest Airlines layoffs in 2025—the carrier’s first mass reduction in workforce in over half a century.
The company has been under intense scrutiny from hedge fund Elliott Investment Management to push to increased profitability and a higher stock price. Since early 2021, Southwest Airlines’ stock price have fallen by 50%, and as of this year, they are down 9.9 percent.
In October, Southwest and Elliott reached a truce to avoid a proxy fight, but the hedge fund secured enough seats to ensure continued influence over CEO Bob Jordan and his leadership team.
The carrier began 2025 with a major executive shakeup, appointing Tom Doxey, formerly Breeze Airways, as the new CFO, meanwhile long-time executives Tammy Romo and Linda Rutherford are set to retire in April.
Southwest Airlines Job Cuts and the Elliott Influence
This transformation extends far beyond the boardroom. Under Elliott’s influencer, Southwest reversed its longstanding open seating policy in favor of assigned seating, allowing the carrier to charge premium fees for preferred seats.
Southwest Airlines financial struggles were further compounded by a crippling operational meltdown in December 2022, which saw 16,700 flight cancellations during the peak holiday season. Southwest employees blamed outdated staff scheduling software for the massive goof up.
An end to Southwest’s no-layoff legacy
As recently as 2021, Southwest took price in its no-layoff legacy. “It all leads up to a strong desire to take great care of our people and then, in turn, our customers. That’s why we’ve never had a layoff,” former CEO Gary Kelly said in an interview.
Today, that legacy of zero Southwest layoffs was shattered. The Southwest Airlines workforce reduction marks a painful turning point for a company once celebrated for putting employees first.
Obviously, people haven’t taken the news too kindly. One X (formerly, Twitter) user, @HalSinger wrote “Another profitable company (Southwest Airlines) announces mass layoffs, in an effort to appease Wall Street. Firing workers *outside of a downturn* is a breach of the social compact. Workers should share in the upside when employers are profitable; instead, they are cut loose.”
Another profitable company (Southwest Airlines) announces mass layoffs, in an effort to appease Wall Street. Firing workers *outside of a downturn* is a breach of the social compact. Workers should share in the upside when employers are profitable; instead, they are cut loose. pic.twitter.com/qX5qGoQDaW
— Hal Singer (@HalSinger) February 18, 2025
Many blamed Elliott for Southwest Airlines layoff in 2025. Another user wrote @WilliamJMcGee, “Southwest Airlines started flying in June 1971 & in nearly 54 years has never had mass lay-offs, a claim no other major carrier can make. Until now. Elliott Investment Management’s board room takeover has led to the loss of 1,750 employees (15%).”
Southwest Airlines started flying in June 1971 & in nearly 54 years has never had mass lay-offs, a claim no other major carrier can make. Until now. Elliott Investment Management’s board room takeover has led to the loss of 1,750 employees (15%).https://t.co/7ZvlzatYgQ
— William J. McGee (@WilliamJMcGee) February 18, 2025
As Southwest Airlines braves one of the most aggressive transformations in its history, the question remains. Can the carrier balance its newfound corporate ambitions with the legacy of employee-first values that made it an industry leader?
For now, the skies above Southwest Airlines have never seemed more uncertain.
