Southwest Airlines temporarily halts corporate hiring and many summer internships to reduce expenses.

• Southwest is pausing most of its summer internships as well as non-contract hiring.
• Southwest CEO Bob Jordan outlined the cost cuts in a staff memo.
• The carrier had been under pressure from an activist investor to improve returns.

CEO Bob Jordan announced Monday that the company is temporarily halting corporate hiring and promotions, cancelling most of its summer internships, and foregoing some employee team-building events to reduce expenses and enhance profitability.

Jordan emphasized the importance of every dollar in the fight to achieve excellent financial performance in a note viewed by CNBC.

He stated that the company will postpone other activities "as necessary."

A Southwest spokeswoman confirmed the changes.

She stated in an email that the business would continually assess its hiring requirements to determine when it is appropriate to resume hiring.

Southwest has stopped its annual employee "rallies," a tradition that has been held since 1985 and involves staff listening to the airline's leaders discuss the year's goals and enjoying food and entertainment.

Last year, Southwest was under pressure from activist Elliott Investment Management to replace its CEO. The two sides reached a settlement in October, with Elliott gaining five board seats but not achieving control, and Jordan remaining in the top job.

"In 2024, we made significant progress and gained tangible momentum, but we are still far from our goal of achieving industry-leading profit margins. Jordan warned that a major risk in 2025 is becoming complacent and not maintaining the focus and energy from the previous year."

The airline has devised a plan to boost profits by replacing its 50-year-old open seating model with assigned seats, introducing a legroom-rich section, offering overnight flights, and reducing unprofitable routes.

In September, the company reduced its flights from Atlanta, resulting in job losses. However, employees were given the option to apply for positions at other bases.

On January 30, Southwest will release its fourth-quarter results. Over the past 12 months, the carrier's shares have increased by 14%, while those of its competitors have risen by more than 160%. Additionally, shares in and have gained approximately 70% and 33%, respectively.