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Southwest Airlines is implementing its first significant layoffs in 53 years, announcing on February 17, 2025, that it will cut 15% of its corporate workforce, affecting approximately 1,750 employees. The decision comes in response to financial struggles, as the airline faces declining profits. CEO Bob Jordan indicated that the layoffs are part of a plan expected to save the company around $210 million in 2025, not factoring in severance costs, which could add an additional $60 to $80 million.
The layoffs coincide with broader industry trends, as several budget airlines make cutbacks to adjust to changing market conditions. In July, Spirit Airlines announced plans to bundle services to attract higher-paying customers, while JetBlue Airways delayed the delivery of numerous aircraft until 2030. Southwest is also reevaluating its open-seating policy to increase revenue. As the airline navigates these changes, impacted employees will receive pay, benefits, and bonuses until their severance takes effect in late April, according to the company.