Southwest Airlines to Reduce Atlanta Flights and Slash 300 Jobs to Revive Financial Health

Major operational changes are set for April 2025 as Southwest Airlines aims to boost profitability due to Investor pressure.

By Thea Felicity

Sep 25 2024, 11:54 AM EDT

Southwest Airlines will implement a significant cost-cutting measure affecting employees and passengers.

Southwest Airlines Announces It's Ending Its Open Seating — BURBANK, CALIFORNIA - JULY 25: A Southwest Airlines plane takes off from Hollywood Burbank Airport as other Southwest planes are parked at their gates on July 25, 2024 in Burbank, California. Southwest Airlines has announced it will discontinue its 50 year policy of open seating and will assign seats including premium seating in an effort to broaden its appeal. Mario Tama/Getty Images

As shared by CNBC, a company memo showed that the airlines will reduce their operations in Atlanta next year, April 2025, which means flights to and from. Therefore, weekly flights in Atlanta International Airport will be down to 381 flights compared to 567. Cities in Atlanta, where Southwest will be operating, will be reduced to 21.

Southwest's decision came after a critical "investor day," where the airlines received pressure from investment firm Elliott Investment Management to take these actions as a way to improve their financial performance. JP Morgan stated that Investor Day is when company chief executives present their strategies to increase shareholder profits and reduce expenses.

Elliott Management also believed that Southwest is lacking behind its competitors and that the need to modernize its operations must be met to avoid decreased stock value and declining financial records.

Southwest Airlines Slahes Over 300 Employees

While Southwest Airlines will not close its crew base in Atlanta, the reduced operations will still reduce hundreds of employees. Airways Magazine specifically reported the airlines' decision to lay off over 200 flight attendants and 140 pilots.

CNBC's shared memo explained that the company tried its best to avoid such changes, but making cuts is necessary to return to profitability. It was emphasized that the layoffs were not due to employee performance but rather a step for the company's financial health recovery.

Affected staff, should they wish to work for Southwest again, will have to "bid" for other jobs available in different cities where the airline operates. Initially, it was promised that most employees would be offered transfers, but no confirmation has been released yet.