Southwest hires some, to end summer internships in a cost-effective way
Gary Kaltbaum, president of Kaltbaum Capital Management, called Navidi and Southwest Airlines ‘Varney & Co.’ analyzed on
Southwest Airlines is looking to cut costs by ending some hiring and most summer internships.
A Southwest spokesperson told FOX Business, “This year, we are limiting mandatory spending, including holding Southwest’s parades. “We are also temporarily pausing most winter positions (while honoring prior offers) and all non-contractual internal and external hiring. We will continue to evaluate hiring needs to determine when it is necessary for the business to continue hiring. “
“Every dollar counts as we continue to fight to return to sound financial performance,” Southwest CEO Bob Jordan said in a company memo to employees. The Wall Street Journal He reported.
Ramp agents load luggage onto a Southwest Airlines Boeing 737-800 at Baltimore-Washington Airport in Maryland in April. (Angus Mordant/Bloomberg via Getty Images/Getty Images)
Southwest Airlines has made changes by reducing passenger movement to reduce the risk of injury.
Jordan said the “time” on the lineup is not right as we strive for cost discipline and focus on a lean organization that’s close to the job, close to the frontline and close to our customers. .
Southwest parades are the carrier’s annual employee events. In the year According to an Instagram post from Jordan in February 2024, more than 10,000 employees have moved to the carrier’s three locations in 2023.
Travelers use the Southwest Airlines check-in kiosk at Boston Logan International Airport. (Scott Eisen/Bloomberg via/Getty Images)
Last fall, the carrier implemented a “multi-year” plan to improve its finances, saying it would “reduce hiring, increase scheduling efficiencies, capitalize on supply chain opportunities and improve organizational efficiency.”
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The effort, announced at Southwest’s Investor Day in September, aims to save the company $500 million in operating savings by 2027, the airline said.
At the investor day, Southwest outlined a major change in its pipeline.
A Southwest Airlines jet lands at LaGuardia Airport on Feb. 4, 2024, in New York City. (Bruce Bennett/Getty Images)
The company said it would begin assigning seats, “enhancing” its boarding process and introducing premium seats. It will also begin red-eye flights in February to “maximize aircraft utilization” and shorten aircraft turnaround times between flights.
Southwest offers additional leg and red-eye bookings to fill open seats for 2026 flights
Meanwhile, the longstanding policy of allowing two free checked bags continued to stand.
The company reported 132 million passengers in the first three quarters of the year.