Southwest’s cost cutting expands into a hiring freeze
Southwest Airlines is freezing corporate hiring and promotions, pausing most summer internships, and skipping its annual team-building “rallies” as it continues to cut costs.
The move follows a year of cuts at Southwest, including stopping service to four airports in April and cutting more than 300 pilot and flight-attendant positions in September. In July, the airline said it would ditch its love-it-or-hate-it open-seating policy to open up premium options.
The airline ceded five board seats to activist investor Elliott Management in October.
Southwest shares are up more than 15% over the past 12 months, lagging behind the S&P 500. Rival airlines’ shares are doing far better over the same period: United Airlines is up 176%, Delta Air Lines is up 74%, JetBlue is up about 56%, and American Airlines has climbed by about 38%.
The airline ceded five board seats to activist investor Elliott Management in October.
Southwest shares are up more than 15% over the past 12 months, lagging behind the S&P 500. Rival airlines’ shares are doing far better over the same period: United Airlines is up 176%, Delta Air Lines is up 74%, JetBlue is up about 56%, and American Airlines has climbed by about 38%.
