Southwest Airlines announced Monday that it will cut about 15% of its corporate jobs, or about 1,750 people, in a move its CEO called “unprecedented” as the company works to cut costs.

The company said it expects to save $210 million this year and about $300 million in 2026 from the layoffs. The layoffs will be mostly completed by the end of the second quarter and will include some senior leadership positions, CEO Bob Jordan said in a staff note seen by CNBC.

“This decision is unprecedented in our 53-year history and change requires us to make difficult decisions,” Jordan said in a press release. “We are at a critical juncture as we transform Southwest into a leaner, faster and more agile organization.”

The decision to cut jobs at Southwest comes months after it reached a settlement with activist investor Elliott Investment Management, which won five seats on Southwest’s board but no control. Elliott also pushed unsuccessfully to replace Jordan as CEO.

Other recent cost-cutting measures by Southwest include a hiring freeze, suspension of internship programs and cancellation of team-building “rallies” that have been in place since 1985, CNBC previously reported. The company has also slashed unprofitable routes.

Last year, Southwest presented a plan to improve profits that included abandoning its more than 50-year-old open seating model in favor of designated seats and an area with extra legroom. The company also recently launched night flights for the first time.

“We must ensure we fund the right work, reduce duplication, and build a lean organizational structure that increases clarity, speed and urgency,” Jordan said in a memo on Monday.

The layoffs will take effect at the end of April, Jordan said, adding that most of the affected employees will not be able to work but will still receive wages, benefits and bonuses until then.
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