Southwest CEO says the airline won't have furloughs, for now

Southwest says it will not furlough any employees for now, despite COVID-19's crushing blow to major airlines. "We have no intention of seeking furloughs, layoffs, pay rate cuts, or benefits cuts through at least the end of this year," Southwest CEO Gary Kelly said in a memo. But Kelly cautioned that he "can't guarantee it will never happen, especially during these dark pandemic times." Restrictions attached to federal bailout money barred airlines from implementing furloughs or layoffs through September. Southwest says 17,000 of its workers have already taken voluntary separation packages and extended time off. Even still, Kelly said the airline is losing $20m a day. Kelly outlined the airline's efforts to cut costs in the memo. "To deal with the financial crisis, we scrambled to cut spending and raise more cash from multiple sources," he said, specifying that the company cut capital projects, shareholder returns and operating costs accounting to $7b for 2020. <br/>