Southwest to Furlough Workers Absent New Round of Government Support
Southwest Airlines (NYSE: LUV) has reportedly sent furlough notices to 42 parts inventory workers, setting up what could be the first involuntary job cuts in the airline's 49-year history. Though the notice only impacts a small number of workers, the airline is likely hoping the message reverberates throughout the company.
Airlines have been scrambling to cut costs as travel demand has fallen due to the pandemic. The industry initially survived without layoffs thanks to assistance as part of the CARES Act, but as that funding, and a prohibition on layoffs that came with it, expired, a number of carriers have taken steps to reduce their workforce.
Image source: Southwest Airlines.
Source Fool.com
