Southwest Airlines is taking steps to reduce costs and align its workforce with adjusted flying plans by offering voluntary departure packages and extended leave options to airport ground workers across 18 cities and at its headquarters, Bloomberg reports.
The move comes as the airline faces mounting pressures from delayed aircraft deliveries, which are forcing Southwest to scale back its growth and adjust its operations.
In a statement released Monday, Southwest Airlines confirmed that the buyout offers will be extended to employees in roles such as customer service, ramp agents, operations agents, cargo employees, and some supervisors. These positions are integral to airport operations, and Southwest aims to manage its workforce levels due to a slowdown in new aircraft deliveries. However, the airline did not immediately disclose how many workers will receive the offers.
The airline stated that employees who accept these buyouts will depart from the company at the end of the year. The offers are expected to be extended to affected workers later this month.
This decision comes as Southwest faces significant financial challenges. The airline had initially planned to receive 79 new planes from Boeing Co. in 2024 but now expects to take delivery of only 20. The delays, which have been attributed to slower-than-expected deliveries from Boeing, also mean that Southwest will not receive any of the highly anticipated 737 Max 7 jets this year. As a result, the airline has had to delay the retirement of some of its older planes, further complicating its operations.
Alongside the aircraft delivery delays, Southwest is also managing the impact of costly new labor contracts, which have contributed to rising expenses. The combined effect of the delayed aircraft and increased labor costs has prompted the airline to reassess its workforce needs and make these buyout offers in an attempt to balance its operations with the current business environment.
Southwest’s decision to offer voluntary departures comes at a time when the airline industry is facing growing challenges, including labor disputes and higher operational costs. Despite these hurdles, Southwest remains focused on managing its fleet and workforce in a way that will allow the company to maintain profitability while addressing the shifting dynamics in the aviation sector.
