Since being founded in 1966, Southwest Airlines has always been seen as the fun airline. Known for its relaxed, quirky atmosphere and unique customer-first approach, it stood out in an industry that was often criticized for being impersonal and focused solely on profit. Southwest built its brand around making flying less stressful and more enjoyable for passengers and its employees. This is what the Southwest culture was known for.
The airline, and its culture, became famous for its playful flight attendants, its unique approach to service, and most notably, its first-come, first-served seating policy, which allowed passengers to board quickly and choose their seats on the spot. Southwest also did not charge you for checked bags, a truly revolutionary decision at the time when other airlines were charging hefty fees for even the smallest of bags. Southwest’s commitment to offering affordable flights without the hidden fees that plagued the industry made them beloved by many customers who valued transparency and simplicity.
However, their commitment to making air travel more enjoyable did not just stop there. Southwest focused on quick turnarounds and low operating costs allowed them to offer affordable tickets without compromising the passenger experience. Their tagline, “You are now free to move about the country,” became a symbol of freedom and flexibility, as it allowed thousands of people who would not otherwise be able to afford air travel to fly with ease and comfort.
And like any great organization, Southwest also focused on cultivating a work culture that was just as unique as its brand. They made a name for themselves by treating their employees like family, ensuring that they felt valued and empowered. It was a place where people worked hard, had fun, and stayed loyal, knowing they were a part of something special. Southwest’s distinct “No layoff” policy meant that employees knew that no matter what, they would always have a place at Southwest. And that meant the people at Southwest always felt at home, inspiring them to give their best every single day. This powerful workplace culture attracted and retained the best employees.
But now, that culture is being tested. The airline has begun making changes that are fundamentally altering the very nature of what made Southwest stand out in the first place. The first blow came when Southwest announced the discontinuation of its beloved first-come, first-served seating policy. The new boarding system will assign seats in advance, a move that takes away the flexibility and excitement that loyal customers once appreciated. Loyal customers who had long enjoyed the ability to choose their seats now feel like just another passenger on a traditional airline.
Next, Southwest made another unexpected move by ending its longstanding policy of allowing passengers to check two bags for free. For years, Southwest stood as one of the few airlines that didn’t charge for baggage, a move that attracted customers looking for value and transparency in a market that had been rife with hidden fees. By charging for checked bags, Southwest’s new policy is a betrayal to its loyal customer base.
However, these changes were only the beginning. In April 2025, Southwest made its most jarring move yet: it laid off 1,750 employees, marking the first mass involuntary workforce reduction in the airline’s 53-year history. This decision has, quite simply, shattered the culture at Southwest. Employees who once knew they belonged at Southwest no matter what now know something entirely different: If Southwest can save a buck, it will not hesitate to let its people and their families go! And the culture goes with that.
Southwest chose to prioritize short-term financial gains over long-term cultural integrity, which has meant terminating its culture for its employees and customers. Customers no longer see Southwest as the special, fun airline anymore. In fact, they don’t even see it as just another airline either. Instead, Southwest is the airline that lost its uniqueness, stripped away the features that once made it stand out, let go of the people who believed in it for their livelihood, and adopted the same corporate practices as its competitors.
The most important lesson for business leaders to take away from Southwest’s cultural rise and unfortunate downfall is to root every decision in culture. Do your decisions align with your organization’s values? Is there a clear understanding of how your choices will impact the long-term health of your culture? Culture is not just an abstract concept but a living, breathing force that shapes a company’s identity. It takes years, or even decades, to build and is cultivated through consistent actions, leadership, and a clear sense of purpose.
However, culture is fragile. A single misguided decision or a series of shortsighted choices can unravel everything overnight. In the case of Southwest, these recent moves have the potential to erode the trust and loyalty of its employees and customers, two pillars that have sustained the airline’s success for so long. What are you doing to create a high-performance, sustainable culture?
