The Investment Whisperer
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Investment Whisperer

Business

Southwest Airlines pauses corporate hiring, most summer internships to cut costs

by admin January 15, 2025
January 15, 2025
Southwest Airlines pauses corporate hiring, most summer internships to cut costs

Southwest Airlines is pausing corporate hiring and promotions, suspending most of its summer internships and going without some employee team-building events that date back to the 1980s in order to cut costs and improve margins, CEO Bob Jordan told staff.

“Every single dollar matters as we continue to fight to return to excellent financial performance,” Jordan said in the note Monday, which was seen by CNBC.

He said the company will delay other activities “when it makes sense.”

A Southwest spokeswoman confirmed the changes.

“We’ll continue to evaluate hiring needs on an ongoing basis to determine when it makes sense for the business to resume hiring,” she said in an email.

As part of the cost cuts, Southwest is pausing its employee “rallies,” a company team-building tradition that dates back to 1985 in which staff hear from the airline’s leaders about the year’s goals and are treated to food and entertainment.

Southwest spent months last year under pressure from activist Elliott Investment Management, which called for a CEO change at the carrier. The two sides settled in October with Elliott winning five Southwest board seats, short of control, and Jordan remaining in the top job.

“We made a lot of progress in 2024, and we have a lot of tangible momentum … but we’re still far from our goal of returning to industry-leading profit margins,” Jordan wrote. “A key risk in 2025 is acting as if the urgency has passed and therefore not sustaining the focus and energy from 2024.”

The airline last year charted out a plan to increase profits that includes ditching its more than 50-year-old open seating model in favor of assigned seats and creating a section with extra legroom, flying overnight flights, and more aggressively cutting back unprofitable routes.

In September, the company slashed its flights from Atlanta, eliminating jobs, though staff were able to apply to work out of other bases.

Southwest is scheduled to report fourth-quarter results on Jan. 30. The carrier’s shares are up 14% over the past 12 months, while United’s are up more than 160% and shares in Delta Air Lines and American Airlines have gained about 70% and 33%, respectively.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Taiwan sees threefold surge in suspected Chinese espionage cases
next post
MSNBC President Rashida Jones steps down after four-year tenure

Related Posts

Krispy Kreme stock plunges after doughnut chain pauses...

May 9, 2025

In wake of L.A. wildfires, a diverse small...

March 4, 2025

Elon Musk’s X sues advertisers over alleged ‘massive...

August 7, 2024

The U.S. economy grew at a 3.3% pace...

January 27, 2024

How a tiny town hit by Helene could...

October 5, 2024

‘Eat now, pay later’? DoorDash-Klarna deal fuels concerns...

March 26, 2025

How Foot Locker is waging a comeback after...

September 24, 2024

A lack of child care is keeping this...

July 9, 2024

23andMe to delist from Nasdaq, deregister with SEC

May 29, 2025

‘They can’t get it wrong again’: Economists are...

April 11, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (1,404)
    • Investing (3,391)
    • Politics (4,572)
    • World (4,505)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheInvestmentWhisperer.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 TheInvestmentWhisperer.com | All Rights Reserved