Southwest Airlines has never laid off a single worker or cut pay in 45 years. Since it began operating in 1972, not one employee has seen a paycut or a layoff. How is this possible?
Oh, and the company has been profitable every year since its first full year of operation.
The company’s CEO Gary Kelly revealed their secret on “Mad Money” hosted by Jim Cramer. He said, “Our people are fantastic, it really is what sets us apart competitively in the industry and they are the ones that have made Southwest so successful.”
“There is a lot to a culture, and it’s easier to have a strong culture if you feel like you’re a champion. And that’s the way our employees feel,” Kelly said.
So fantastic people, that’s all it takes?
Disclaimer: We have no position in Southwest Airlines Co. (NYSE: LUV) and have not been compensated for this article.