STORY: Southwest Airways is slicing 15% of company jobs, or about 1,750 roles.
The price range service introduced the transfer Monday, saying it desires to cut back prices and streamline its group.
That may embody trimming senior administration, with 11 management roles to go.
Chief Govt Bob Jordan known as it an “unprecedented” transfer within the airline’s 53-year historical past.
Southwest says it hopes to largely full the layoffs by the top of the second quarter.
They’re meant to generate annual financial savings of $300 million from subsequent 12 months.
The cuts are a part of a turnaround plan Southwest introduced in September to shore up sagging earnings and bolster its stability sheet.
That three-year plan included new partnerships and the sale and leaseback of some jets.
All of it comes because the trade grapples with hovering prices for labor and plane upkeep.
Southwest has additionally been exhausting hit by the turmoil at Boeing, which provides all of its planes.
That has resulted in delays to the supply of recent 737s.
Final month, Southwest did report fourth-quarter earnings that beat Wall Avenue estimates although, helped by improved airfares and powerful vacation demand.
However shares within the agency are down round 10% this 12 months, even whereas friends like Delta Air Traces and United have climbed.
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