Southwest is pausing some hiring and summer training as a cost-cutting measure

Southwest Airlines is looking to cut costs by halting some hiring and most summer training.

“We are limiting discretionary costs, including holding this year’s Southwest rallies, as we focus on reducing costs.” Southwest spokesman He told Fox Business. “We are also pausing most summer internship positions (in honor of offers already made) and pausing all non-contract internal and external hiring. We will continue to evaluate hiring needs on an ongoing basis to determine when it makes sense for the company to resume hiring.”

Southwest CEO Bob Jordan told employees in a company memo that “every dollar matters as we continue to struggle to return to excellent financial performance.” The Wall Street Journal I mentioned.

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Jordan said the “timing” of the marches “is not appropriate when we are striving to achieve cost discipline and focus on a leaner organization that is closer to the business, closer to the front lines, and closer to our customers,” according to the memo. .

Southwest Parades are events that the transportation company holds for employees every year. More than 10,000 employees went to the three held by the carrier in 2023, according to a February 2024 Instagram post from Jordan.

last fall, carrier It said it would “reduce staffing, improve scheduling efficiency, capitalize on 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 achieve a $500 million run rate for the company in 2027, according to the airline.

During its investor day, Southwest also detailed the big changes it’s making.

The company said it will begin allocating seats, “evolving” the boarding process and introducing premium seats. It will also start playing Red eye flights in February to “maximize aircraft utilization” and shorten the time planes need to park between flights.

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Meanwhile, the company continued to stick to its long-standing policy of allowing two free checked bags.

The company reported 132 million air passengers during the first three quarters of the year.