Southwest Airlines Halts Hiring as Staff Cuts Costs Amid Financial Pressure

Dallas: So, here’s the scoop. Southwest Airlines is hitting the brakes on hiring to save some cash. They’re also putting a stop to summer internships and even their fun staff rallies. This all comes after some serious talks with Elliott Investment Management, an activist firm that’s been pushing for changes.

A spokesperson confirmed they’re pausing all internal and external hiring. They’ll still honor the internship offers already made, but no new ones will be offered. CEO Bob Jordan mentioned in a memo that every dollar counts as they work to get back on solid financial ground.

Along with the hiring pause, they’re cutting back on non-essential spending. That means no more Southwest Rallies this year, which have been a tradition since 1985. These events were all about celebrating achievements and laying out plans for the year.

They’ll keep checking their hiring needs to see when it makes sense to start hiring again. This cost-cutting comes as investors are getting a bit restless over the airline’s financial performance. Elliott Investment Management has been vocal about wanting changes, even suggesting a new CEO.

Last year, Southwest decided to change its open-seating model and introduce some premium seating options, which is a big shift for them. In October, they reached a deal that allowed Jordan to stay on as CEO while Elliott got six directors on the board.

While Southwest’s stock has seen a 13.7% increase over the past year, it’s still down 40% over the last five years. So, they’ve got some work to do!