DALLAS, Texas: Southwest Airlines is laying off 1,750 employees, or 15 percent of its corporate staff, in the company's first significant job cuts in 53 years.

The airline, based in Dallas, said most of the layoffs will affect corporate and leadership roles, including directors and senior leaders. Eleven senior leadership positions—15 percent of the company's top management team—will be eliminated.

The job cuts, expected to be mostly finished by the end of June, are part of a plan to reduce costs and make the airline run more efficiently, CEO Bob Jordan said. "This is a difficult but necessary decision," he added.

Southwest expects these layoffs to save about US$210 million this year and around $300 million by 2026.

Last November, the airline tried to reduce staff by offering buyouts and extended leave to airport workers such as customer service agents, baggage handlers, and cargo staff.

The company has also been under pressure from hedge fund Elliott Investment Management to increase profits and raise its stock price, which has dropped significantly since early 2021. So far this year, Southwest's stock has fallen by 9.9 percent.

Southwest and Elliott agreed to a deal in October to avoid a major conflict. However, Elliott gained several seats on the airline's board, giving it influence over the company's leadership decisions.