Southwest Airlines Will Lay Off Workers for First Time Ever
Southwest Airlines executives often mention that Southwest has never paid off any workers. But that could soon come to an end. The largest airline in the country sent noticed to nearly 7,000 workers about potential layoffs. Other airlines such as American and United have already said they could lay off tens of thousands of workers.
Southwest sent notices to 6,828 of its approximately 58,000 employees. That’s nearly 12% of its workforce.
The total includes 2,551 ground crew members who handle baggage, cargo, and restocking planes, as well as 1,176 customer service agents, 1,500 flight attendants and 1,221 pilots, as per CNN.
The airline said the layoffs will take place on March 15 or April 1 depending on the employee group unless negotiations with unions are successful or the government offers another round of federal aid to airlines.
Southwest has usually been the most profitable major US airlines. However, during the pandemic, it reported losses of $2.75 billion through the first nine months of the year. The airline is on track to post its first ever annual loss. Southwest has been in negotiations with its unions since October. They have been looking at possible pay cuts and other cost saving options in order to trim about $1 billion in “overstaffing costs” due to lack of travel demand.
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