Southwest Airlines plans to trim 300 positions from its authorised headcount by end-2013 by not replacing departing staff and not hiring, as part of a previously announced initiative to slash spending by $100 million in 2013.
The airline's chief executive Gary Kelly says the cut of 300 positions will be through a combination of job attrition, not hiring and anticipating retirements and departures.
"It doesn't mean that we will get rid of 300 staff," he tells reporters following today's Southwest Airlines investors day event.
The cuts to Southwest's headcount is part of an overall plan by the airline to cut spending by $100 million in 2013. This will be achieved through the headcount cuts, bringing down supplier costs and reducing inefficiences in its supply chain.
Southwest is seeking to bring costs down and drive revenue through various initiatives as it work towards meeting a 15% return in investment capital goal in 2013.