Gary Kaltbaum, president of Kaltbaum Capital Management, analyzes Nvidia and Southwest Airlines at Varney & Co.
Southwest Airlines is looking to cut costs by halting some hiring and most summer internships.
We are limiting discretionary spending, including running the South West Rally for this year, as we focus on cost reduction. Southwest Spokesperson told FOX Business. We are also discontinuing most summer internship positions (honoring previously submitted offers) and discontinuing all non-contract internal and external hiring. We continue to assess hiring needs on an ongoing basis to determine when it makes sense for the business to resume hiring. “
In a company memo to employees, Southwest CEO Bob Jordan said that “every dollar counts as we continue to fight to return to excellent financial performance.” The Wall Street Journal It has been reported.
Ramp attendants load bags onto a Southwest Airlines Boeing 737-800 at Baltimore-Washington Airport in Maryland, in April. (Angus Mordant/Bloomberg via Getty Images/Getty Images)
The timing” of the mergers “is not appropriate as we strive for cost discipline and focus on a leaner organization that is closer to business, closer to the front line and closer to our customers,” Jordan said, according to the memo. .
Southwest Rallies are events that the transportation company organizes for employees every year. According to a February 2024 Instagram post from Jordan, more than 10,000 employees left for the three companies the company had in 2023.
Passengers use the Southwest Airlines check-in kiosk at Logan International Airport in Boston. (Scott Eisen/via Bloomberg/Getty Images)
last fall, carrier It said it was “minimizing hiring, optimizing scheduling efficiencies, investing in supply chain opportunities and improving company efficiency” while implementing a “multi-year” plan to improve finances.
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The effort, unveiled at Southwest's investor day in September, aims to bring the airline $500 million in rate savings by 2027, according to the airline.
During the investor day, Southwest also detailed the big changes it's making to the pipeline.
A Southwest Airlines jet at LaGuardia Airport on February 4, 2024, in New York City. (Bruce Bennett/Getty Images)
The company announced that seat assignments will begin the “evolution” of its boarding process and the introduction of premium seats. It will also start working Red eye flights in February to “maximize aircraft utilization” and shorten aircraft turnaround times between flights.
SOUTHWEST to end open seats for 2026 flights, offering more red-eye and legroom bookings
Meanwhile, the country continued its longstanding policy of allowing two free checked bags.
The company reported 132 million scheduled passengers in the first three quarters of the year.