Southwest Airlines is offering buyouts and extended leaves of absence to airport workers to avoid what it calls “overstaffing in certain locations,' which it blames on a shortage of new planes from Boeing. This reportedly includes all LA-area airports.
Southwest Airlines is offering buyouts and extended leaves of absence to airport workers to avoid what it calls "overstaffing in certain locations," which it blames on a shortage of new planes from Boeing.The move on Monday comes as a hedge fund presses Southwest to increase profits and boost the stock price, which has fallen sharply since early 2021.A Southwest spokesperson said the offers of "voluntary separation" are limited to 18 airports.
"Offering voluntary separation and extended time off to contract and noncontract employees, along with continued slowed hiring, will help us avert overstaffing in certain locations."Southwest had originally expected about 85 new Boeing 737 jets this year but has cut that number to 20 because of production problems at Boeing that began after a panel blew out of the side of an Alaska Airlines 737 Max during a flight in January.
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