Gary Kaltbaum, President of Kaltbaum Capital Management, analyzes Nvidia and Southwest Airlines on ‘Varney & Company’.
Southwest Airlines is looking to cut costs by halting some hiring and most summer internships.
“We are limiting discretionary costs, including the holding of South-West rallies, for this year as we focus on reducing costs.” southwest spokesperson told Fox Business. “We are also pausing most summer internship positions (respecting offers already made) and pausing all non-contract internal and external hires. We are evaluating hiring needs on an ongoing basis to determine whether Will continue to look into when it is appropriate for businesses to resume hiring.”
Southwest CEO Bob Jordan told employees in a company memo that “every single dollar counts as we continue to struggle to return to excellent financial performance.” wall street journal Informed.
Ramp agents load luggage onto a Southwest Airlines Boeing 737-800 airplane at Maryland’s Baltimore-Washington Airport in April. (Angus Mordant/Bloomberg via Getty Images/Getty Images)
According to the memo, Jordan said the time “is not right” for the rallies, “when we are striving for cost discipline and focusing on an organization that is closer to the work, closer to the front lines and closer to our Close to customers.” ,
Southwest rallies are events that the carrier holds each year for employees. According to Jordan’s Instagram post in February 2024, more than 10,000 employees were headed to the carrier in 2023.
Passengers use a Southwest Airlines check-in kiosk at Boston’s Logan International Airport. (Scott Eisen/Bloomberg/via Getty Images)
last fall, carrier said it would “reduce hiring, optimize scheduling efficiency, take advantage of supply chain opportunities and improve corporate efficiency” while implementing a “multi-year” plan to improve its finances.
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The effort, unveiled at Southwest’s investor day in September, seeks to bring the company to a savings rate of $500 million in 2027, according to the airline.
During the investor day, Southwest also detailed major changes coming to the pipeline.
A Southwest Airlines jet at LaGuardia Airport in New York City on February 4, 2024. (Bruce Bennett/Getty Images)
The company said it would begin allocating seats, “evolve” its boarding process and introduce premium seating. Its operation will also start red eye flights in February to “maximize aircraft utilization” and reduce aircraft turnaround times between flights.
Southwest to end open seating for 2026 flights, offer more legroom and red-eye booking
Meanwhile, it stuck to its long-standing policy of allowing two free checked bags.
The company reported 132 million air passengers in the first three quarters of the year.
