Southwest Airlines has warned its staff that some major changes are coming in the near future. In a video message shared with employees, Southwest’s COO Andrew Watterson said that the airliner will have to make some “difficult decisions” as it looks to boost profit and deal with pressure from activist investor Elliott Management.
Watterson didn’t share details about the upcoming decisions but indicated that they will have an impact on the staff.
“We have a couple of difficult decisions heading our way. It’s not station closures. But we need to keep moving the network to help us drive back to profitability,” Watterson said. “And so I apologize in advance if you as an individual are affected by it.”
According to CNBC’s sources, the company isn’t planning layoffs or furloughs at the moment. However, it will likely cut its presence in some locations and up its footprint in more profitable cities. As a result, some of the staff would be required to relocate.
Southwest has already announced a number of major changes in hopes of becoming more profitable after several tough quarters. It will allow its flights to be listed on third-party services like Google and Kayak, start offering premium seats at a higher price, and change its long-standing practice of seat assignment.