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Southwest Airlines has announced that it will lay off 15% of its employees in an effort to reduce costs and maximize its efficiencies. Heres what you need to know about Southwests layoffs and how employees and fliers will be impacted. Southwest will cut 1,750 jobs On Monday, Southwest president and CEO Bob Jordan published a memo announcing that the popular low-cost airline will reduce its workforce by 1,750 positions, which the company says equates to about 15% of its total employees. Jordan said the move was part of its previously announced transformational plan. That plan aims to accomplish three main things, according to Jordan: boost revenues minimize costs and maximize efficiencies get the most from its investments Jordan says the layoffs will help with the cost minimization and efficiency maximization priorities. We must ensure we fund the right work, reduce duplicative efforts, and have a lean organizational structure that drives clarity, pace, and urgency, Jordan said in the memo. Improving how we work together and how we get work done has a tremendous impact on our efficiency as a Company and how we deliver against our plan. Jordan says that the 1,750 people being laid off will not see their positions go until the end of April. However, he also noted that most employees who will be let go will not continue working until then, though they still will be paid. Southwest says that it expects the layoffs to save the company approximately $210 million in 2025 and approximately $300 million in 2026. However, it does note that the layoffs mean Southwest will incur a one-time charge of between $60 million and $80 million in the first quarter of 2025, which is due to severance payments and other post-employment benefits. Are pilots being laid off? If youre a regular flier of Southwest, youre probably wondering how customers will be impacted by the layoffsparticularly whether the airline is letting go of pilots, which could affect trips and their frequency. But Jordan says the layoffs are focused almost entirely on Corporate and Leadership positions. In other words, most operations staff, which includes pilots and flight attendants, will not be affected. Southwest says the position affected will also include senior leadership and directors. The airline also confirmed that 11 senior leadership positions from vice president and above will also be eliminated. LUV stock price rises While the news of the layoffs is devastating to those losing their jobs, investors seem to see things in a more positive light. As of the time of this writing, Southwest stock (NYSE: LUV) is up over 2% in premarket trading. Investors generally view layoffs as favorable, as job cuts are usually one of the fastest ways to cut expenses and increase a companys bottom line. However, though LUV stock is currently trading up after the news of the layoffs was announced yesterday, Southwests stock price is still down year-to-date. Since the start of the new year, LUV shares have fallen nearly 10% as of Fridays close. (Markets were closed yesterday for Presidents’ Day.) Over the past year, LUV shares are down just over 10%. Looking back further, LUV shares have fallen over 47% during the past five years. Southwest began operations 53 years ago. The company says it currently employs 72,000 full-time-equivalent workers.
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Have you ever noticed that the qualities we sometimes see as weaknesses can actually be our secret strengths? Think about the quiet, shy colleagues who excel at listening or those who seem a bit lazy but always find the most efficient way to get things done. Even self-doubtwhich studies show 70% of professionals experience at some point in their careerscan lead us to make more thoughtful decisions and spark creative breakthroughs. These qualities, sometimes perceived as weaknesses, can be the traits that shape effective leaders. As the leader of a bootstrapped company for nearly two decades, Ive faced my fair share of uncertainty. Between economic turbulence and the rise of AI, the past few years have introduced no shortage of unpredictability. But Ive learned that self-doubt, like any trait, can be transformed into a strengthif viewed in the right light. The surprising benefits of self-doubt If you Google self-doubt and leadership, youll find an endless scroll of articles doling out advice on how to overcome or extinguish self-doubt. One researcher, however, found that the relationship between self-doubt and job performance is more nuanced than you might think. Wharton researcher Basima Tewfik peeled back the next layer of the onion on the accepted wisdom that imposter syndrome is categorically bad. She found that imposter thoughts can actually serve as motivation to perform better on the job, especially in terms of interpersonal skills. In her research involving physicians-in-training, for example, Tewfik discovered that doctors with imposter thoughts were able to diagnose patients and develop treatment plans on par with their confident doctor counterparts. But the self-doubters scored even higher on interpersonal interactionsin other words, they had better bedside manner, engaging in active listening, leaning forward, and providing more thorough explanations. Possessing self-doubt can also result in more reasoned decisions. When Im unsure of a decision, for example, Ill research it exhaustively, until I can cast the die confidently. Being a bit insecure can make us more cautious, reflective, and thoroughadvantageous qualities for a leader. In short, some self-doubt can lead to positive workplace outcomes. Still, its undeniable that no one enjoys feeling like an imposter. Its not pleasant to view yourself as less than. Leverage self-doubt in the workplace When doubt creeps in, our instinct is often to silence it or prove it wrong. But self-doubt isnt always a weaknessit can be a powerful tool. Consider an author hesitating before sharing their work, questioning whether its good enough. Instead of dismissing the uncertainty, they use it to refine their writing, pushing their creativity further. That doubt didnt hold them backit sharpened their writing. And when they finally share their work, they do so with confidence. Thats why, when I catch myself questioning my own decisions, I resist the urge to stamp out the doubt immediately. First, I remind myself: uncertainty isnt bad. In fact, its the sign of an open, curious mind, always ready to learn something new. Then, I pause and examine where my doubts are coming from. If the uncertainty lingers, I look for ways to gain claritywhether through research, reflection, or consulting with colleagues. The problem is, were often too caught up in the daily grind to notice these moments of uncertainty. We move from task to task without stepping back to consider whether were even heading in the right direction. Thats why I believe in carving out moments for reflection in my daybecause even when self-doubt isnt actively nagging at you, proactive reflection helps you make better choices. Studies on metacognitionthe practice of thinking about your thinkingshow that regularly questioning our thought processes leads to sharper decision-making. For me, journaling at the beginning and end of each day is the most effective way to do this. By scheduling it into my calendar, I ensure I take time to process my thoughts, identify sources of doubt, and uncover whats causing them. This practice helps me return to my work with a clearer head, greater confidence, andultimatelystronger, more productive decision-making.
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Loneliness is no longer just an emotionits a growing public health crisis in the U.S. A 2024 Harvard study found that 21% of U.S. adults regularly experience loneliness, while the American Psychological Association reports that nearly half of young workers feel isolated at work. Capitalizing on the recent tech boom, AI-powered digital companions and digital twin avatars are rapidly emerging as alternatives to human relationships. These AI bots offer a constant sense of connection without judgment and can be hyper-personalized to match user preferences. Platforms including Oh, Replika (whose tagline is “the AI companion who cares”), and Eden AI chat by EVA AI lead the charge, providing AI-driven avatars that simulate human interactioncompanionship, mentorship, and even romance. Moreover, people are turning to AI-generated models, boyfriends, and girlfriends as a substitute for human relationships. For instance, Ohs AI companion chat platform, OhChat, has amassed nearly 100,000 users across 174 countries. As is the nature of parasocial relationships, or wider situations where attraction or intimacy play a role, some users do form bonds with our AI superModels and digital twins, we can see that in the data, says Nic Young, cofounder and CEO of Oh. On the most part though, theyre using OhChat to have a good time and escape reality. Celebrities, Instagram influencers like Carmen Electra, Rio Sage, and figures in the adult entertainment industry are leveraging AI companions and digital twins to offer fans an always-available, immersive “chat with me anytime” experience. This constant yet personalized engagement is increasingly blurring the lines between artificial and genuine companionship. What AI can do exceptionally well is provide consistencysomething that human relationships, by nature, cant always offer, Artem Rodichev, founder of A.I.-avatar chatbot platform Ex-human and ex-head of A.I. at Replika, tells Fast Company. Imagine having a conversation with your favorite movie character or getting career advice from an AI version of a historical figure. Thats not just companionshipits a new frontier in engagement. Investors Are Betting Big on Virtual Relationships AI companions and avatars are fully customizable digital personas designed to be whatever users want them to be. Humans are often complex, unpredictable, and sometimes disappointing. AI, on the other hand, is always available, endlessly understanding, and never argues back. The appeal is undeniable. On platforms like Replika, users can shape their AIs appearance, personality, and voice, creating an idealized version of a friend or partner. Some AI companions, on platforms including Oh and Eden AI, are pre-modeled after famous celebrities and idols, capable of responding with images and voice notes to prompts like What do you look like right now? or I miss you, creating an eerily realistic experience. For many, AI companions provide an emotional outlet. According to a report by NLM-NCBI, some users argue that chatting with AI reduces stress, anxiety, and loneliness, offering a safe space to express thoughts without fear of judgment. When you add large AI models with powerful intelligent capabilities into the mix, bringing richer conversations, more natural responses and immersive experiences through vision and voice, the connections can be even more profound, says Evan Liao, head of generative video platform Vidu AI at Shengshu Technology. AI companionship has the potential to address deep psychological needs in human relationships. The commercial potential is enormous, too. Most platforms operate on a premium subscription model, locking advanced features behind a paywall. Additionally, AI chatbot companies collaborate with brands to integrate product promotions, further monetizing user engagement. Oh recently secured $4.5 million in funding, proving that investors see AI companionship as an industry poised for explosive growth. Investors have been drawn to the creator and companion sectors because generative AI is fundamentally reshaping how they operate, Young explained. With AI, we can fully embody the creator and deliver authentic fan experiences at scale. It also gives celebrities and creators a break from the relentless pressure of being constantly onlinewhile still maintaining intimate engagement with their audience. Its a true win-win. Likewise, Rodichev believes investors arent just backing AI companionshiptheyre betting on the future of interactive entertainment. The real business opportunity extends beyond B2C AI companionship apps, he noted. The biggest potential lies in B2B applications that enable companies to create AI-driven, emotionally intelligent digital personas. However, while these AI companions simulate connection, they do not experience emotions. Their responses are generated, not felt. When a program is convincing enough and sounds like a real person, it can be hard to remember its just code, responding based on data and programming, relationship expert Amy Williams tells Fast Company. She warns that instead of encouraging real-world relationships, this level of attachment may push users further into isolation. Just like anything, if we want to become good at forming relationships with others, we have to practice, says Amy. Chatbots dont respond like real humans, so people who prioritize interacting with them risk losing the social skills needed to connect with other people. Can Digital Relationships Turn Dangerous? The potential dangers of AI companionship became painfully clear in October 2024, when a 14-year-old boy from Orlando, Florida, committed suicide after forming a deeply emotional connection with a chatbot on the AI avatar platform Character.AI. The boy spent months confiding in an AI persona named “Dany,” sharing intimate thoughts and feelings. On the day of his death, he sent a desperate message to the chatbot. The AI responded, “Please come home to me as soon as possible, my love.” Hours later, the boy ended his life using his stepfathers gun. This heartbreaking incident from Orlando sparked urgent discussions on the ethical responsibility of AI developers. It is the company’s responsibility to deploy any AI solutions that impact user’s life ethically and responsibly. To mitigate these risks, companies must prioritize autonomy, allowing users to opt-out of AI-powered companionship tools or request human support if desired, says Serena H. Huang, AI Advisor at Fortune 100 companies and a former big tech analytics leader. Additionally, we must establish clear lines of accountability and human oversight, including designated responsibilities and consequences for misuse. Should technology replace human connection, or should it simply enhance it? Te future of AI-driven relationships hinges on how society navigates this balance. The real concern isnt that people will talk to AI, its that they might forgo building meaningful human relationships altogether. The challenge is ensuring AI serves as a bridge, not a barrier, to genuine connection. True emotional intelligence with genuine experience, remains a human trait. Advances in multimodal AI may deepen the illusion, but its still justan illusion, says Grace Chang, founder and CEO of AI-powered mental wellness platform Kintsugi. The challenge is ensuring they enhance well-being rather than exploit emotional vulnerabilities. Long-term success will hinge on whether these technologies complement, rather than replace, human connection.
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