Southwest CEO says the airline won’t have furloughs

posted on 27th July 2020 by Eddie Saunders
Southwest CEO says the airline won't have furloughs

Southwest Airlines says it will not furlough any employees for now, despite the damaging effects of COVID-19 to major airlines.

Earlier this month, both United Airlines and American Airlines sent warnings of possible furloughs to roughly 60,000 employees.

Southwest CEO Gary Kelly said in an internal memo, “We have no intention of seeking furloughs, layoffs, pay rate cuts, or benefits cuts through at least the end of this year,”

“To deal with the financial crisis, we scrambled to cut spending and raise more cash from multiple sources,”

he went on to specify that the company cut capital projects, shareholder returns and operating costs accounting to $7 billion for 2020. The airline also secured $3.2 billion in cash proceeds under the CARES act, sold common stock to investors for $2.2 billion in cash and borrowed $12.2 billion from lenders.