Southwest is offering buyouts to airport workers and blaming Boeing for the job cuts

Date:

Share post:


DALLAS — DALLAS (AP) —

Southwest Airlines is offering buyouts and extended leaves of absence to airport workers to avoid what it calls “overstaffing in certain locations,” which it blames on a shortage of new planes from Boeing.

The move on Monday comes as a hedge fund presses Southwest to increase profits and boost the stock price, which has fallen sharply since early 2021.

A Southwest spokesperson said the offers of “voluntary separation” are limited to 18 airports. The company declined to identify the airports or say how many jobs it hopes to eliminate.

All the targeted jobs are in ground operations, including customer service agents, baggage handlers and cargo workers. Pilots and flight attendants are not included in the buyout offer, the spokesperson said.

Southwest officials have said that the Dallas-based airline plans to end this year with 2,000 fewer workers than it started. That is after Southwest grew from 66,600 to nearly 75,000 employees last year. The figures count part-timers as one-half.

“Southwest has reduced overall capacity to meet demand with a constrained fleet due to aircraft delivery delays,” the company said in a statement. “Offering voluntary separation and extended time off to contract and noncontract employees, along with continued slowed hiring, will help us avert overstaffing in certain locations.”

Southwest had originally expected about 85 new Boeing 737 jets this year but has cut that number to 20 because of production problems at Boeing that began after a panel blew out of the side of an Alaska Airlines 737 Max during a flight in January.

The Southwest fleet consists solely of Boeing 737s, including the Max and older versions of the plane.

Starting in June, hedge fund Elliott Investment Management built an 11% stake in Southwest and pressed the airline to improve its financial performance. The two sides reached a truce last month to avoid a proxy fight, but Elliott won several seats on the Southwest board, which it can use to keep pressure on CEO Robert Jordan and other executives.

Even before Elliott, Southwest limited hiring and stopped flying to several airports to save money. It also announced plans to target premium travelers.

Southwest shares rose 3% Monday and are up 13% this year. That is far behind the 117% jump at Delta Air Lines and the 58% gain at United Airlines.



Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

Penn State wins trademark case over retailer's use of vintage logos, images

WILLIAMSPORT, Pa. -- Penn State has won a closely watched trademark fight over an online retailer's use...

What you need to know about the proposed measures designed to curb Google's search monopoly

U.S. regulators are proposing aggressive measures to restore competition to the online search market after a federal...

Average rate on a 30-year mortgage in the US rises to highest level since July

The average rate on a 30-year mortgage in the U.S. edged closer to 7% this week as...

The biggest remaining unsanctioned Russian bank hit with U.S. sanctions, nearly three years into war

WASHINGTON -- Russia's third largest bank, Gazprombank and its six foreign subsidiaries were hit with U.S. sanctions...

Kenya cancels airport and energy deals with Adani group after the U.S. indicts the tycoon

NAIROBI, Kenya -- Kenya’s president said Thursday he has cancelled multimillion-dollar airport expansion and energy deals with...

North Korea and Russia agree to expand their economic cooperation

SEOUL, South Korea -- North Korea and Russia reached a new agreement for expanding economic cooperation following...

Stock market today: Asian shares mostly slip despite Nvidia's solid earnings report

TOKYO -- Asian shares were mostly lower on Thursday after a mixed close on Wall Street, with...

Feds outline 'necessary steps' for Colorado River agreement by 2026 but no recommendation yet

LAS VEGAS -- Federal water officials made public on Wednesday what they called “necessary steps” for seven...