Southwest Airlines is set to reduce its workforce by 1,750 positions, accounting for 15% of its corporate staff, marking the first significant layoffs in the airline’s 53-year journey.

The company based in Dallas announced on Monday that these job reductions will predominantly impact “corporate overhead and leadership roles,” specifically targeting senior leadership and director-level positions. A total of eleven senior leadership roles—representing 15% of the senior management committee—will be phased out.

These layoffs are expected to be largely finalized by the end of June and are part of a strategic initiative to cut costs and reshape the airline into a “more efficient, quicker, and adaptable organization,” as stated by Southwest CEO Bob Jordan.

Jordan elaborated, “This decision is without precedent in our 53 years of operation, and enacting change compels us to make tough choices.”

The airline anticipates that this workforce reduction will yield around $210 million in savings for this year alone, with projections of approximately $300 million by the year 2026.

Last November, Southwest took proactive measures by offering buyouts and extending leave options for operations staff at airports, including customer service representatives, baggage handlers, and cargo personnel, with the goal of mitigating “overstaffing in certain areas.”

The company is experiencing increasing pressure from Elliott Investment Management, a hedge fund seeking to enhance profitability and elevate the stock’s performance, which has seen a notable decline since early 2021. As of now, Southwest’s shares have decreased by 9.9% this year.

To avert a proxy battle, the two parties reached a temporary agreement in October, yet Elliott managed to secure multiple seats on the Southwest board, positioning itself to continue exerting pressure on Jordan and other higher-ups.