Southwest Airlines Offering “Voluntary Separation Packages” Due To “Overstaffing”

We just saw the ‘success’ of the Biden administration not allowing M&A in the airline industry when Spirit, once slated to merge with jetBlue, instead filed for bankruptcy this week. “That’s the miracle of Bidenomics!”

And they aren’t the only carrier under distress, it appears. 

Southwest Airlines, based in Dallas, is addressing overstaffing issues at select airports by offering voluntary separation to ground operations, cargo, and provisioning employee, according to SimpleFlying. 

In a memo distributed on Friday, the airline noted that overstaffing—largely due to aircraft delivery delays—affects nearly 20 airports where Southwest has a significant presence, though the issue is not universal across all locations. Certain positions at Southwest’s headquarters are also eligible for the voluntary separation program.

Aviation analyst JonNYC first reported that Southwest Airlines is offering a voluntary separation program to address overstaffing at specific airports.

Southwest “Saw this floating around the airline groups on FB. Looks like ATL and LAX stations taking some big hits.” pic.twitter.com/AgP6M6Ovcm

— JonNYC (@xJonNYC) November 9, 2024

In a memo to staff, Chris Johnson, Vice President of Ground Operations, along with Cole McGuire and Wally Devereaux, both vice presidents overseeing operations, outlined that the voluntary separations aim to align staffing levels with Southwest’s revised capacity plans, impacted by aircraft delivery delays.

The SimpleFlying report notes that the 2024 Voluntary Separation Program (VSP 24) is open to contracted and non-contracted employees, including customer service agents, ramp agents, cargo agents, and provisioning agents.

Eligible positions also extend to operations agents, supervisors, assistant managers, and operations managers. Employees at 18 airports, including Atlanta, Dallas Love Field, Los Angeles, and Tampa, will receive information about the VSP 24 package soon. Select employees at Southwest’s Dallas headquarters will also be eligible.

The program is particularly targeted at employees nearing retirement, or those interested in pursuing personal interests such as returning to school or spending more time with family. These employees will have several weeks to review the resources and determine if the VSP 24 aligns with their goals.

For those opting for voluntary separation, the resignation date is set for December 30, 2024.

This initiative coincides with a planned reduction in Southwest’s Atlanta operations, where over 300 pilot and flight attendant positions will be cut by April. The airline, under shareholder pressure from Elliott Investment Management, is focusing on revenue growth and has also reduced hiring rates to prevent further overstaffing.

A Southwest spokesperson confirmed the program, noting that aircraft delivery delays have limited fleet capacity, prompting adjustments in staffing. The voluntary separation, combined with a hiring slowdown, is intended to prevent workforce excesses at impacted locations.

It remains unclear what actions Southwest will take for employees who choose not to participate in the VSP 24.