Get Started

Learn more about Credit Cards, Travel Programs, Deals, and more.

Southwest Offers Buyout Packages to Employees

This post may contain affiliate links - Advertiser Disclosure. As an Amazon Associate, we earn from qualifying purchases.

Southwest Rapid Rewards Performance Business Card

Southwest Offers Buyout Packages to Employees

Southwest Airlines has suffered in recent months due to the lack of travel demand, similar to most airlines around the world. Air travel is picking up, but the airline says it expects 30 percent less passenger traffic this fall compared to last year.

With 30% less traffic Southwest will need less employees, so it is offering buyout packages in order to cut its workforce. Domestic carriers are looking to do this before September 30th. Until then, they can’t lay off employees, cut salaries or furlough workers if they received grants and loans from the government. We wrote earlier today about American Airlines’ efforts to trim its number of employees.

“Given our current situation, my No. 1 goal is to protect the future of Southwest Airlines and do my best to provide job security for our employees,” Southwest CEO Gary Kelly said in a letter to employees, Dallas News reports. “It is clear that for the near future we are currently overstaffed. It’s imperative that we bring our employee numbers down, voluntarily.”

Generous Packages

According to Dallas News, Southwest employees with more than 10 years at the company would get a full year’s pay and four years of flight privileges if they opt for early retirement.

Pilots would get paid about two-thirds of their average salary for five years or until they hit 65, whichever comes first. Early retirees would also get a year of company-paid health insurance.

The packages offered by Southwest are some of the most generous in the industry. Employees have until July 15 to apply for the programs.

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

Lower Spend - Chase Ink Business Preferred® 100K!

Chase Ink Business Preferred® is a powerful card that earns 3X Ultimate Rewards points in a broad range of business categories on the first $150K in spend per year. Right now earn 100K Chase Ultimate Rewards points after $15K $8K spend in the first 3 months with a $95 annual fee.

Learn more about this card and its features!


Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
DDG
DDGhttp://dannydealguru.com
Based in NYC. Points/miles enthusiast for years and actively writing about it for the last 6+ years at Danny the Deal Guru. I'm always looking out for deals. Making a few bucks is always nice, but the traveling is by far the best part of this business.

Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related

7,703FansLike
9,903FollowersFollow
16,444FollowersFollow