Thousands of Southwest workers opt for voluntary buyouts

Tuesday, 21 Jul, 2020 0

More than a quarter of Southwest Airlines’ workforce have agreed to voluntary buyouts or extended leave.

That amounts to nearly 18,000 workers as the airline prepares to be ‘dramatically smaller’ after the summer.

Southwest CEO Gary Kelly said 4,400 employees signed up for voluntary separation and a further 12,500 agreed to extended leave of between six and 18 months.

About one-third of all flight attendants applied.

"I’m incredibly grateful to those of you who answered the call," Kelly told employees in an audio message.

Southwest said employees can still withdraw the offer.

The airline may still need to make forced job cuts but will likely update this later this week when it announces its earnings.

The airline has never made involuntary job cuts in its 49-year history.

The Dallas-based carrier agreed a new government loan under the US$2 trillion Cares Act and will decide whether to use it before payroll protection funds run out at the end of September.

 

By Ray Montgomery, US editor



 

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TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



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