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Tag: Southwest

  • Southwest to cut 15% of corporate staff, including senior leadership positions

    Southwest to cut 15% of corporate staff, including senior leadership positions

     Jack Otter and the panel discuss the downfall of Southwest Airlines’ popularity and how they could turn it around on ‘Barron’s Roundtable.’

    Southwest Airlines cut 15% of its corporate workforce as it tries to rapidly reduce overhead costs to become a “leaner” company. 

    The airline said that the layoffs primarily target corporate overhead and leadership positions, including senior leadership and director roles. In total, 1,750 jobs will be affected, including 11 senior leadership positions, as the carrier strives to build a “leaner and more agile organization” under its transformational plan.

    “We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” CEO Bob Jordan said in a statement.

    SOUTHWEST TO PAUSE SOME HIRING, SUMMER INTERNSHIPS IN COST-CUTTING MEASURE

    Southwest said most of the separations will be completed by the end of the second fiscal quarter, and will result in approximately $210 million in savings for fiscal year 2025 and $300 million for the full 2026 fiscal year.

    The company expects to incur $60 million to $80 million in costs related to severance payments and post-employment benefits in the first quarter of fiscal year 2025. 

    Travelers use a Southwest Airlines Co. self check-in kiosk at Logan International Airport (BOS) in Boston, Massachusetts, U.S., on Friday, July 19, 2019. ( Scott Eisen/Bloomberg via Getty Images / Getty Images)

    Southwest has made substantial changes to rein in costs, particularly after activist investor Elliott Investment Management took a $2 billion stake in the carrier and subsequently called on the airline to take actions such as making leadership changes to improve its financial performance. 

    Last month, the company announced it was halting certain corporate events and pausing some hiring and most summer internships, though it plans to honor offers that were already made, in order to limit discretionary spending. 

    Southwest Airline jet

    Southwest Airlines Boeing 737-700 aircraft landing at Ronald Reagan Washington National Airport. (Getty Images / Getty Images)

    Southwest CEO Bob Jordan told employees in a January memo that “every single dollar matters as we continue to fight to return to excellent financial performance,” The Wall Street Journal reported.

    Last fall, the carrier said it would be “minimizing hiring, optimizing scheduling efficiency, capitalizing on supply chain opportunities, and improving corporate efficiency” while implementing a “multi-year” plan to improve its finances. Southwest is aiming to achieve a $500 million run rate in savings in 2027, the company said at its investor day in September. 

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    Ticker Security Last Change Change %
    LUV SOUTHWEST AIRLINES CO. 30.28 +0.35 +1.17%

    During the investor day, Southwest also detailed big changes it has in the pipeline, such as offering assigned seats, evolving its boarding process and introducing premium seating. It will also start operating red-eye flights in February to “maximize aircraft utilization” and shorten the turnaround time for planes between flights.

    FOX Business’ Aislinn Murphy contributed to this report. 

  • Southwest Airlines CEO on American Airlines crash in DC: ‘our hearts go out’

    Southwest Airlines CEO on American Airlines crash in DC: ‘our hearts go out’

    Former Air Force navigator Jim Brauchle gives his take on the collision between a jet and a military helicopter in D.C. on ‘The Claman Countdown.’

    Southwest Airlines CEO Bob Jordan said “our hearts go out” to people on the American Airlines flight involved in Wednesday night’s midair collision with a helicopter in the nation’s capital. 

    The chief executive of the Dallas-based carrier took a moment to “acknowledge the tragic accident near Reagan DCA Airport last night” before he and other Southwest executives launched into a discussion of the airline’s fourth-quarter financial results on Thursday with analysts and investors.

    Southwest Airlines CEO Bob Jordan (Christopher Goodney/Bloomberg via Getty Images/File)

    American Eagle Flight 5342 operated by American Airlines subsidiary PSA Airlines was on approach to runway 33 at the Washington, D.C.-area’s Ronald Reagan Washington National Airport when it and an Army Sikorsky H-60 Black Hawk helicopter collided. The two aircraft that collided were carrying 67 people combined, all of whom are thought to be dead, officials have said.

    PSA AIRLINES: WHAT TO KNOW ABOUT CARRIER INVOLVED IN DC MIDAIR COLLISION

    “Our hearts go out to all those loved ones who are among the passengers and the crew, and we also extend our sympathies to our friends at American Airlines and their subsidiary PSA Airlines as they process this event themselves,” Jordan said during the call, adding that he wanted to “thank the first responders who worked tirelessly throughout the night.”

    Emergency response units search the crash site of the American Airlines plane on the Potomac River

    Emergency response units on Thursday search the crash site of the American Airlines plane that went down in the Potomac River on Wednesday night. (Tasos Katopodis/Getty Images)

    “And while we are all competitors, we are one airline community, and we will do everything we can to support our friends at American and at PSA,” he continued.

    Other major U.S. airlines have commented on the incident as well. 

    “Our hearts go out to the victims of this tragic accident and their families – we’re in touch with our colleagues at @AmericanAir and will continue to offer any assistance and support they may need,” United Airlines said in a Thursday post on X.

    JetBlue said it was “deeply saddened by the tragic accident in Washington, DC, and extend our heartfelt condolences to all those affected.” 

    UNITED, DELTA ISSUE TRAVEL WAIVERS FOLLOWING AMERICAN AIRLINES MIDAIR COLLISION NEAR DC

    Airlines for America, a trade association that counts Delta Air Lines, Hawaiian Airlines, JetBlue and others among its members, similarly said it was “heartbroken and devastated.”

    “Our deepest condolences are with the families and loved ones of the passengers, flight crew and U.S. service members,” Airlines for America said. “We stand ready to assist everyone involved during this difficult time and will await more details from the NTSB.”

    The National Transportation Safety Board (NTSB) is taking point on the investigation into Wednesday’s tragic collision. The Federal Aviation Administration and the Army are also involved.

    WHITE HOUSE, AMERICAN AIRLINES WILL RELEASE PLANE CRASH VICTIMS LIST

    Todd Inman, an NTSB board member, said during a Thursday press conference that the independent investigative agency’s goal was to “understand not just what happened, but why it happened, and to recommend changes to prevent it from happening again.” 

    Emergency response units search the crash site of the American Airlines plane on the Potomac River after the plane crashed last night

    Emergency response units on Thursday search the crash site of the American Airlines plane that went down in the Potomac River on Wednesday night. (Tasos Katopodis/Getty Images)

    The NTSB aims to release a preliminary report on the midair collision within 30 days. A final report on the incident, he said, will come out “once we’ve completed all of our fact-finding and investigation.”