Southwest Airlines this week made the headlines for announcing the first-ever company-wide corporate layoffs in the airline’s 54-year history, something which has undercut the airline’s historical operating model of putting employees first. This decision primarily aims to streamline operational costs and help improve profitability, and the decision came as the result of financial pressures related to higher labor costs that the company is facing. 
Southwest Airlines has had a difficult run since the COVID-19 pandemic brought the global commercial aviation industry grinding to a halt, and Boeing’s delivery days and a shifting post-pandemic travel landscape have undoubtedly hurt the carrier.