Southwest Airlines Pauses Hiring as It Aims to Cut Costs and Streamline Operations

Dallas: So, Southwest Airlines is hitting the brakes on some hiring and internships this year. They’re trying to cut costs, which makes sense given the current situation.

They mentioned they’re also putting a hold on their fun employee events, like the Southwest Rallies, to save some bucks. They’re still honoring offers for summer internships but pausing most new hires for now.

The airline is keeping an eye on its hiring needs and will decide when to start hiring again based on what makes sense.

Back in September, they announced some big changes to their board, with their chairman set to retire in 2025. This was partly due to pressure from Elliott Investment Management, a hedge fund that’s been pushing for improvements at Southwest.

Elliott has a stake in the airline and believes these changes will help boost its financial performance. They reached a settlement in October, leading to some board shake-ups.

Southwest used to be a powerhouse, never posting a full-year loss until the pandemic hit in 2020. Now, they’re doing better than American Airlines but still lagging behind Delta and United.

They’ve changed a lot over the years, moving from smaller airports to compete with bigger airlines. With the rise of ultra-low-cost carriers, they’re often undercut on prices.

To turn things around, Southwest plans to upgrade about a third of its seats to premium ones with extra legroom. They’re also changing their seating policy, moving away from letting passengers choose their seats after boarding. Plus, they’re teaming up with international airlines like Icelandair to expand their destinations.

In November, they offered buyouts and extended leaves to airport workers to manage staffing levels, which they blamed on delays in new planes from Boeing.

Interestingly, their shares saw a slight uptick in morning trading. It’ll be interesting to see how these changes play out for them.