Southwest to pause some hiring, summer internships as cost-cutting measure

Southwest Airlines is trying to cut costs by discontinuing some hiring and most summer internships.

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

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

Ramp attendants load baggage onto a Southwest Airlines Boeing 737-800 at Baltimore-Washington Airport in Maryland, in April. (Angus Mordant/Bloomberg via Getty Images/Getty Images)

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Jordan said that the “timing” for the demonstrations “is not right when we strive for cost discipline and focus on a leaner organization that is closer to work, closer to the front line, and more close to our customers,” according to the note. .

Southwest’s events are events that the carrier holds for employees every year. More than 10,000 employees went to the three that the carrier held in 2023, according to an Instagram post of February 2024 by Jordan.

Travelers use a Southwest Airlines check-in kiosk at Logan International Airport in Boston. (Scott Eisen/Bloomberg via/Getty Images)

Last fall, the carrier said it would be “minimizing hiring, optimizing planning efficiency, capitalizing on supply chain opportunities, and improving 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 a savings rate of $500 million by 2027, according to the airline.

During the investor day, Southwest also detailed big changes it has in the pipeline.

A Southwest Airlines jet at LaGuardia Airport on February 4, 2024, in New York City. (Bruce Bennett/Getty Images)

The company said it will start assigning seats, “evolve” its boarding process and introduce premium seats. It has also started working red eye flights in February to “maximize aircraft utilization” and shorten the turnaround time for planes between flights.

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Meanwhile, it continued to uphold its long-standing policy of allowing two free bags.

The company reported 132 million passengers boarded in the first three quarters of the year.