Southwest Airlines is set to make significant job reductions, eliminating approximately 1,750 positions, which accounts for 15% of its corporate workforce. This move marks the first substantial layoffs in the airline’s 53-year existence.

The Dallas-based airline announced on Monday that the majority of these cuts will target “corporate overhead and leadership roles,” specifically affecting senior leadership and directorial positions. Notably, the airline will cut eleven senior leadership roles, which make up 15% of its senior management committee.

These job reductions, expected to be finished by the end of June, are part of Southwest’s strategic initiative to reduce expenses and reshape the company into a “leaner, faster, and more agile organization.” CEO Bob Jordan emphasized the gravity of the decision, stating, “This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions.”

The airline anticipates that these layoffs will result in savings of around $210 million this year, with projections rising to approximately $300 million by 2026.

Last November, Southwest attempted to avoid excess staffing by offering buyouts and extended leave options for airport employees, such as customer service representatives, baggage handlers, and cargo workers. This initiative was aimed at preventing “overstaffing in certain locations.”

The airline has faced mounting pressure from hedge fund Elliott Investment Management to maximize profits and enhance its stock performance, which has significantly declined since early 2021. As of this year, Southwest’s stock has dropped by 9.9%.

Following a truce in October that helped avert a proxy battle, Elliott secured multiple board seats at Southwest, allowing them to maintain influence over the company’s strategic direction and put ongoing pressure on CEO Jordan and other senior executives.