How has activist investor pressure impacted Southwest Airlines?

Southwest Airlines has experienced significant pressure from an activist investor who successfully gained board seats and began exerting substantial influence on the company's operations. This pressure has contributed to Southwest implementing its first layoffs in over 50 years as the airline faces challenges from increased competition and thin profit margins. The activist investor's influence represents a pivotal shift in Southwest's corporate governance, pushing the company toward cost-cutting measures that break with its long-standing employment practices. This situation highlights how investor activism can fundamentally reshape company policies, especially in industries like air travel that are still recovering from pandemic-related disruptions.