Gary Kaltbaum, president of Kaltbaum Capital Management, analyzes Nvidia and Southwest Airlines for Varney & Co.
Southwest Airlines is aiming to cut costs by canceling some hiring and most summer internships.
“As we focus on reducing costs, we are limiting discretionary expenses, including hosting this year's Southwest Rally,” a Southwest Airlines spokesperson told FOX Business. “We are also suspending most summer internship positions (honoring offers already made) and suspending all non-contract internal and external hiring. We will assess your hiring needs and determine when it makes sense for your company to resume hiring.”
“Every dollar counts as we continue to fight to return to strong financial performance,” Southwest CEO Bob Jordan told employees in an internal memo. wall street journal Reported.
Ramp staff load luggage onto a Southwest Airlines Boeing 737-800 at Baltimore-Washington Airport in Maryland in April. (Angus Mordaunt/Bloomberg via Getty Images/Getty Images)
Southwest Airlines implements changes to reduce passenger movement to reduce risk of injury
According to the memo, Jordan said the “timing” of the gathering was “not appropriate at a time when we are pursuing cost discipline and focusing on a leaner organization that is closer to work, closer to the field, and closer to our customers.” .
The Southwest Gathering is an annual event held by airlines for their employees. According to Jordan's February 2024 Instagram post, more than 10,000 employees participated in the airline's three events in 2023.
Travelers use Southwest Airlines check-in kiosks at Boston's Logan International Airport. (Scott Eisen/via Bloomberg/Getty Images)
The company said last fall that it would “minimize hiring, optimize scheduling efficiencies, take advantage of supply chain opportunities and improve corporate efficiency” while implementing a “multi-year” plan to improve its finances.
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The initiative, announced at Southwest Airlines' investor day in September, aims to deliver $500 million in run-rate savings for the airline in 2027, according to the airline.
Southwest also detailed some big changes in the pipeline during the day for investors.
A Southwest Airlines jet at LaGuardia Airport in New York City on February 4, 2024. (Bruce Bennett/Getty Images)
The company said it would start allocating seats, “evolve” the boarding process and introduce premium seats. It also plans to begin operating redeye flights from February to “maximize aircraft utilization” and reduce aircraft turnaround time between flights.
Southwest Airlines ends open seats on flight 2026, offering more legroom and red-eye reservations
Meanwhile, the airline stuck to its long-standing policy of allowing two free checked bags.
The company reported 132 million air passengers in the first three quarters of this year.
