Why is Southwest Airlines making its first-ever layoffs and how significant is this move?

Southwest's decision to cut 1,700 positions is considered highly significant as the company has been in operation for over 50 years without ever implementing layoffs. The airline is facing pressure to reduce costs due to thin profit margins and intense competition in the industry, which is compelling them to make these cuts to remain competitive. Additionally, pressure from an activist investor who gained board seats influenced this decision. The layoffs specifically target corporate overhead and leadership positions, not pilots or frontline staff. This strategic approach allows Southwest to trim expenses while maintaining operational capacity and assuring travelers that flight services will not be affected.