Southwest Airlines plans to cut 15 percent of its corporate workforce in a bid to cut costs.

The layoffs - a first in the airline's 53-year history -  will slash around about 1,750 jobs.

The cuts make a shift in strategy following last year's battle with activist hedge fund Elliott Investment Management. To keep Elliot at bay, bosses agreed to cut costs and find new ways to make money, such as charging for seating.

Activist hedge fund Elliott Management has amassed a $1.9 billion stake in Southwest Airlines and plans to push for leadership changes at the airline that has lagged big rivals.

Elliott is seeking to replace Southwest CEO Bob Jordan and Chairman Gary Kelly with outside candidates, the activist said in a letter and presentation Monday. Elliott believes Southwest has fallen from a “best-in-class” airline to one of the biggest laggards, according to the presentation detailing its case for change.

Southwest Airlines announced Thursday that the carrier is pulling out of several airports as it contends with financial fallout from Boeing delays. 

CEO Bob Jordan warned in Southwest's latest earnings report that the carrier has intensified its network optimization efforts to address underperforming markets. 

Southwest Airlines and its pilot union reached a tentative agreement on a new contract that would provide aviators with a 50% pay raise over the next four years.

On Thursday, the Southwest Airlines Pilots Association (SWAPA) board of directors agreed to send the agreement to its 11,000-plus pilot membership for consideration.

The decision to do so was based on the board's belief that the agreement, which would run through December 2028, "achieves the goals of the pilot group, provides security for their families, and rewards their industry-leading productivity."

Southwest Airlines has been fined a record $140m (£110m) by the US Department of Transportation (DOT) over its operational meltdown in 2022.

The penalty is about 30 times larger than any other previous fine levelled against an airline in US history.

Millions were left stranded after Southwest cancelled more than 16,900 flights during a busy week of holiday travel last winter.

US officials said the fine "sets a new precedent and sends a clear message".

Southwest Airlines has been handed a record $140 million fine for its operational meltdown during the 2022 holiday travel season, the U.S. Department of Transportation said Monday.

The civil penalty leveled against the airline is about 30 times larger than any previous fine against an airline, DOT officials said in a press release.

The DOT said it will also require Southwest to start issuing a $75 flight credit to any passenger whose arrival is delayed more than 3 hours when it's the airline's fault, including mechanical issues.