Southwest Airlines to cut 15% of its workforce in its first-ever mass layoffs

DALLAS - Southwest Airlines announced its plans to cut 15% of its corporate workforce by eliminating nearly 2,000 jobs.

It would be the first mass layoffs in the Dallas-based airline's 53-year history.

Mass Layoffs at Southwest

What we know:

Southwest says its "workforce reductions" of 1,750 jobs will focus mainly on corporate overhead and leadership positions, including senior leadership and directors.

It plans to cut 11 senior leadership jobs as part of the restructuring plan.

The cuts are expected to save the company about $300 million a year. 

The airline had previously prided itself on never having big layoffs. 

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What they're saying:

"This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions. We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization," said Bob Jordan, President, Chief Executive Officer & Vice Chairman of the Board of Directors. "I arrived at this decision thoughtfully and carefully, knowing how hard it will be to say goodbye to colleagues who have been a significant part of our Southwest culture and accomplishments."

The backstory:

Southwest has been working to cut costs and streamline operations after it faced an activist investor battle with Elliott Investment Management last year.

Back in June, Elliott built an 11% stake in Southwest and pressed the airline to improve its financial performance. The two sides reached a truce in October to avoid a proxy fight, but Elliott won several seats on the Southwest board.

"With the best intentions, the growth of our leadership and noncontract functions have outpaced our operation's growth for many years," a spokesperson told FOX 4. "Now, this group must become more lean, efficient, and agile to better serve our frontline Employees in our shared mission of serving our customers."

The airline is also facing a lawsuit brought on by the U.S. Department of Transportation over chronic flight delays and disrupting travel plans.

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What's next:

The airline says the "separations" will begin in late April. Meanwhile, it says most of those who were notified of their displacement will continue to receive their salaries without needing to report to work.