The Southwest Airlines Co. call center in Oklahoma City will be hit with what the company calls a “mass furlough” starting in March because the company has lost billions of dollars due to the COVID-19 pandemic that resulted in reduced travel by the public.
The Oklahoma Office of Workforce Development was notified that at least 41 employees will be furloughed for up to six months beginning March 15, 2021.
“The COVID-19 pandemic has devastated domestic air travel and tourism. As a result, Southwest Airlines has lost billions of dollars in revenues since the pandemic began,” explained Julie Weber, Vice President and Chief People Officer for the airlines in a letter to the state office.
Southwest reduced its 2020 cash outlays and spending by nearly $8 billion but still suffered a 70% revenue loss in the third quarter of the year. The Payroll Support Program allowed the company to operate through the end of September without making layoffs.
” However, with PSP’s expiration and no clarity that Congress will extend it in the future, Southwest must take further action to reduce our costs associated with Employee salaries, wages, and benefits—the largest cost category by far,” added Weber in her letter.
She said at least 41 customer representatives at the Customer Support and Services Center, 5300 S. Meridian Avenue in Oklahoma City will be furloughed in the March move.
“Although we cannot predict with any certainty, based on the best information available to Southwest at this time, we expect that this furlough will last more than six months but will
be temporary,” added Weber. She also said any customer representative who does not complete probation before the March 15 furlough will be laid off permanently.