Why is Southwest Airlines conducting its first-ever layoffs of 1,700 positions?

Southwest Airlines is implementing these unprecedented layoffs due to several key factors. After more than 50 years in business, the company faces intense competitive pressure in an industry with traditionally thin profit margins, forcing them to lower costs to remain competitive. Additionally, an activist investor who gained board seats has put significant pressure on the company to improve financial performance. The cuts are specifically targeting corporate overhead and leadership positions rather than operational roles like pilots, indicating a strategic restructuring aimed at reducing administrative expenses while maintaining frontline operations.