Southwest Airlines Co. dramatically expanded its furlough warnings, telling employees that 6,828 jobs are at risk as the company and its labor unions have failed so far to agree on how to cut $500 million in costs, Bloomberg News reported. Pilots, flight attendants, baggage handlers and other workers got notices yesterday that they may be furloughed, Southwest said. The new warnings boosts the number of people at risk of being cut between January and April 1 to 7,273, or nearly 13 percent of the workforce. Southwest’s inability to secure a 10 percent reduction in 2021 spending for each work group means the company is on the brink of its first involuntary job cuts in its 49-year history. With the coronavirus pandemic keeping travel demand at about 40 percent of last year’s levels, the airline says it has 20 percent more employees than it needs -- at an expected cost next year of $1 billion. “We are willing to continue negotiations quickly to preserve jobs if we can achieve the support that allows Southwest to combat the ongoing economic challenges,” said Russell McCrady, Southwest vice president of labor relations. The latest notices were the third batch in four weeks that Southwest has sent warning of potential layoffs. The earlier letters went to 445 mechanics, employees who manage parts inventory, technicians who clean aircraft and other workers. Talks began in October, with the goal of securing agreements by the end of that month. The carrier earlier reached deals with two small work groups.
