Kaltbaum Capital Management president Gary Kaltbaum analyzes Nvidia and Southwest Airlines in ‘Varney & Co.’
Southwest Airlines is looking to cut costs by suspending hiring and most summer training.
“We are reducing discretionary costs, including holding this year’s Southwest Rallies, as we focus on cost reduction,” a Southwest spokesperson told FOX Business. “We are also suspending many summer internship positions (to honor the provisions already made) and suspending all non-contractual internal and external hiring. We will continue to analyze hiring needs on an ongoing basis to determine when it makes sense for the business to resume hiring.”
Southwest CEO Bob Jordan told employees in a company memo that “every dollar counts as we continue to fight to return to financial viability,” the Wall Street Journal reported.
Ramp agents load cargo onto a Southwest Airlines Boeing 737-800 at Baltimore-Washington Airport in Maryland, April. (Angus Mordant/Bloomberg via Getty Images/Getty Images)
SOUTHSTEST AIRLINES IS MAKING CHANGES TO PASSENGER TRAVEL IN AN ATTEMPT TO REDUCE THE RISK OF INJURY.
Jordan said the “timing” of the mergers “is not right as we strive for cost control and focus on a lean organization that is closer to the job, closer to the front line, and closer to our customers,” according to the memo. .
Southwest gatherings are events that the carrier hosts for employees each year. More than 10,000 employees will go to the three carriers in 2023, according to a February 2024 Instagram post from Jordan.
Travelers use the Southwest Airlines check-in counter at Logan International Airport in Boston. (Scott Eisen/Bloomberg via/Getty Images)
Last fall, the carrier said it would “reduce hiring, streamline planning, take advantage of acquisition opportunities, and improve corporate efficiency” while implementing a “multi-year” financial improvement plan.
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This effort, revealed at Southwest’s investor day in September, seeks to bring the company $500 million in savings by 2027, according to the airline.
During the investor day, Southwest also outlined some big changes it has in the pipeline.
A Southwest Airlines flight at LaGuardia Airport on Feb. 4, 2024, in New York City. (Bruce Bennett/Getty Images)
The company said it will start assigning seats, “transform” its boarding system and introduce premium seats. It will also start using red-eye flights in February to “increase aircraft utilization” and shorten the time it takes to change flights between flights.
SOUTH-EST TO COMPLETE OPEN SEATS FOR 2026 FLIGHTS, OFFERING MORE SPORTS AND RED-EYE SETTINGS
Meanwhile, it continued to stand by its old policy of allowing two checked bags for free.
The company reported 132 million passengers in the first three quarters of the year.
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