Southwest Airlines is implementing cost-saving measures, including halting most summer internships and pausing non-contract hiring, to improve its financial performance.
Southwest Airlines is taking steps to reduce costs by implementing several measures, including halting most summer internships and pausing non-contract hiring. The airline's CEO, Bob Jordan, emphasized the importance of cost discipline in a memo to employees, stating that 'every single dollar matters' as Southwest strives to return to strong financial performance . Southwest rallies, annual events for employees, will also be suspended this year.
Jordan explained that the timing is not ideal while the company focuses on a leaner organization. These cost-cutting measures follow a broader multi-year plan unveiled at Southwest's investor day in September, aimed at generating $500 million in annual savings by 2027. Other initiatives outlined at the investor day include assigning seats, evolving the boarding process, introducing premium seating, and operating red-eye flights to optimize aircraft utilization. Despite these changes, Southwest maintains its policy of allowing two free checked bags. The airline has reported 132 million enplaned passengers in the first three quarters of the year
Southwest Airlines Cost-Cutting Hiring Freeze Summer Internships Financial Performance
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