Southwest Airlines Pausing Hiring, Internship Program In Cost Cutting Move

Looking to save any dollar it can, Southwest Airlines confirmed to the International Business Times that it is pausing hiring and looking for other cost-cutting moves.

Among the other moves the airline is making is pausing Southwest Rallies for this year.

The events day back to 1985, according to the airline. They were billed as an opportunity to hear from the senior leadership and spend time with other employees in a "festive, fun environment."

Southwest says it is also pausing most summer internship positions but confirmed to IBT that it would honor offers already made.

"We'll continue to evaluate hiring needs on an ongoing basis to determine when it makes sense for the business to resume hiring," a spokesperson said to IBT.

Southwest had a 47-year profit streak that was broken during the pandemic and has struggled to recover in the past several years.

It has been taking steps to complete a turnaround. It is dropping its open seating system and adding upgraded seat options for an added fee.

In September the airline announced it was "executing a transformational plan including tactical and strategic initiatives that will position the airline to elevate the customer experience, improve financial performance and drive sustainable shareholder value."

The plan included a shakeup of its board of directors and the retirement of Executive Chairman Gary Kelly.

Six directors retired in November and the board said they would be replaced by four independent directors. They could include candidates proposed by Elliott Investment Management.

Elliott Investment has a substantial stake in the airline and has called for changes to boost profitability.

Southwest is scheduled to release its earnings report for the fourth quarter on Jan. 30.