• Southwest Airlines has been known for its affordable flights and fun personality since 1971.
• The airline laid off 15% of its headquarters staff in February, the first mass layoff in company history.
• Some current and former employees fear recent changes at the airline could kill its storied company culture.

Southwest Airlines has long billed itself as different from other carriers — but after the company's first-ever round of major layoffs, some employees say they worry it'll soon just become like every other airline.

Some of the teams affected by layoffs in February — the airline's only mass layoff since it started flying in 1971 — helped maintain a free-spirited culture that saw flight attendants singing announcements, gate agents putting up balloons, and employees making a music video called "Just Plane Fun," which promoted Southwest's lighthearted approach.

The company also thinned the ranks of its training staff — and greatly trimmed this year's internship program. Also gone: Its decades-old corporate rallies where leaders aimed to pump up the staff.

"The love is dead," one current Southwest headquarters employee told Business Insider. The person didn't want to give their name because they weren't authorized to speak to the press, but BI is aware of their identity.

How an activist firm helped upend Southwest

The changes come after nearly a year of upheaval at Southwest, during which time an activist investor bought a large stake in the airline and agitated for an operational revamp to cut costs and increase profitability.

Already, Southwest has given in to one of the most visible things that made it unique: its open-seating policy. Starting in the first half of next year, customers will get seat assignments like on any other airline.

The airline also relented on its one-class-fits-all cabin. It's embarking on an overhaul of its fleet to add premium seating, like those with extra legroom available for purchase — adding a new stream of revenue for the airline.

Now, the latest staff cuts, which saw 1,750 people — or about 15% of Southwest's corporate staff laid off — could mean the slow withering away of the rest of what made Southwest different, some employees say.

Southwest told BI that the airline would still stand out because of its culture, which it said is "woven in the fabric" of its employees.

The airline declined to detail specific department changes. It confirmed that CEO Bob Jordan has asked "all of us at Headquarters to run a leaner organization, and that means evolving the way we approach certain focus areas."

"The strength of Southwest's Culture is critical to the success of our business and our ability to serve our Customers," a spokesperson for the airline told BI in a statement. "The decision to have a reduction in our workforce was extremely difficult and focused almost entirely on Corporate and Leadership positions, but we made every attempt to offer the Employees affected with the care and support they deserve. Our People will continue to be what sets us apart as we drive the Company forward."

One of the teams to see a significant downsizing was the airline's "hospitality" group, the current employee said.

The hospitality team is in charge of tasks like reviewing customer feedback, creating initiatives to make flying Southwest more enjoyable, and hearing from frontline employees.

For instance, the snack cart you sometimes see at a gate during a long delay: That's part of the hospitality team.

Southwest confirmed to BI that its "culture department," which helped plan corporate rallies and other employee- and brand-focused initiatives was also among the teams affected by layoffs.

Aviation expert Henry Harteveldt of Atmosphere Research Group told BI that the layoffs in certain departments could risk eliminating what made Southwest special.

"Culture is what helped distinguish Southwest Airlines, particularly the commitment to its people and how it went about hiring, training, retention, and more," he said.

Southwest could maintain its culture so long as longtime leaders pass down their institutional knowledge, he said

Conor Cunningham, an airline analyst with Melius Research, echoed those sentiments in recent notes to clients, calling Southwest's culture its "special sauce."

"A delicate balance is very much needed here, as culture is difficult to cultivate but easy to ruin," he said.

Customers may see a change from Southwest founder's original vision

Southwest, which launched in Texas, quickly became famous for its cowboy culture, hotpants-wearing flight attendants, and free on-board whiskey.

Charismatic, chain-smoking founder Herb Kelleher once avoided a legal battle by arm-wrestling another company's CEO over rights to the slogan "Just Plane Smart."

Kelleher's unorthodox methods promoted fun for Southwest customers and staff and pushed employees not to take themselves too seriously — and his leadership style inspired Doug Parker, the former CEO of Southwest's home state rival, American Airlines.

"As a younger CEO at industry meetings, I would just do everything I could to just hang around Herb, just to observe and hope I could get some of it through osmosis," Parker told BI in 2019. "He was in tune with what was happening at all levels of his company. And he really cared about it."

One laid-off employee in the technology department told BI they worry Southwest may lose loyal customers who specifically sought out the airline because of its culture and signature policies, like open seating, no-hassle trip changes, and free checked bags.

"I just feel like Southwest is done," the former employee said. "Why would [customers] choose our airline?" The person asked to remain anonymous because they don't want to hurt future hiring prospects, but BI is aware of their identity.

Not everyone has lost hope, though. Another laid-off employee, who asked not to be named for fear of losing their severance, told BI that everyone they interacted with still "maintains the culture to the best of their ability."

Colleen Barrett, a longtime leader alongside Kelleher who died last May, was also key to building Southwest's culture. For decades, she encouraged employees to promote respect, fun, and spirit during work to codify Southwest's people-focused reputation.

"Books have been written about Southwest and its culture," Harteveldt said. To Kelleher and Barrett, "Southwest was more than efficiency and low costs," he said. "They viewed the culture as an asset that made Southwest as a brand more relevant to travelers than competitors."

Elliott's new vision for Southwest

After Barrett's death, Elliott Management, the activist investor, soon announced its stake in Southwest and pushed to shake up the airline. Some employees said they thought Barrett had been the last gatekeeper of old Southwest culture.

The hedge fund said Southwest was leaving opportunities on the table, accusing the airline's leadership of a "stubborn unwillingness to evolve" its business practices, product offerings like the lack of premium seating, and technology infrastructure.

Even though Southwest has failed to turn an annual profit only once since 1973, Elliott noted that the airline's recent earnings were a mere fraction of what they were before the pandemic, while rivals have reported record hauls.

Southwest has also struggled to keep the price of its stock in line with competitors. Over the past year, its shares are down more than 12%, compared to Delta Air Lines, for example, which is up more than 40%

A spokesperson for Elliott Management declined to comment.

Now, with the latest changes — especially the job cuts in core culture-driving groups — there may be no one to stop Southwest from being just another run-of-the-mill US airline, some employees said.

"There's definitely a different culture from here on out," the former technology team member told BI. "I think people are going to realize this isn't Southwest."

The February layoffs come on top of a huge year of changes at Southwest. Consider this timeline:

• May 2024: Barrett dies at 79 after decades of building Southwest's culture.
• June 2024: Elliott Management takes a $1.9 billion stake in Southwest, or about 11% of its shares at the time, making it one of the company's largest shareholders.
• July 2024: Southwest announced the coming addition of premium cabins and an end to its famous open-seating policy.
• October 2024: Southwest names six new board seats, including five recommended by Elliott.
• January 2025: Employee rallies canceled, and Southwest's popular internship program downsized.
• February 2025: Southwest cuts 1,750 corporate employees, including hospitality staff. A day later, Elliott made an agreement with Southwest that would allow it to acquire up to a 19.9% stake.

Of course, Southwest's culture may endure even after the big changes. The company says it's making these changes to save $510 million over the next two years.

Its first red-eye flights and first international partnership took off in mid-February. Assigned seating will begin in the first half of 2026.