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

Southwest Airlines is looking to trim costs by halting some hiring and most summer internships.

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

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

SOUTHWEST AIRLINES MAKES CHANGE REDUCING PASSENGER MOVEMENT IN EFFOR TO LOWER INJURY RISK

Jordan said the “timing” for the rallies “isn’t right when we’re striving for cost discipline and focusing on a leaner organization that’s closer to the work, closer to the frontline, and closer to our customers,” according to the memo.

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

Last fall, the carrier said it would be “minimizing hiring, optimizing scheduling efficiency, capitalizing on supply chain opportunities, and improving corporate efficiency” while implementing a “multi-year” plan to improve its finances.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The effort, unveiled at Southwest’s investor day in September, seeks to bring the company a $500 million run rate in savings in 2027, according to the airline. 

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

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

SOUTHWEST TO END OPEN SEATING FOR 2026 FLIGHTS, OFFER MORE LEGROOM AND RED-EYE BOOKINGS

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

The company reported 132 million enplaned passengers over the first three quarters of the year.