In a cost-cutting measure, Southwest Airlines has implemented a freeze on corporate hiring and has canceled its popular corporate rallies this year. The morale boosters typically draw thousands of employees for games, prize giveaways and entertainment.
"Every single dollar matters as we continue to fight to return to excellent financial performance," Southwest CEO Bob Jordan wrote in note to employees.
Also, most summer internship hiring will be paused. Offers already made will be honored, Southwest said.
Southwest's management fought off a five-month challenge last year by activist firm Elliott Investment Management, including a threatened proxy battle. Elliott's push did result in a reconstituted board of directors and was a driver of a various changes announced by the airline last year, including plans to implement assigned seating and to retrofit cabins with extra-legroom seats. Those new products are expected to arrive in the first half of 2026.
The new products are part of a financial plan revealed in late September. Southwest says the plan will produce $4 billion in incremental revenue and a 10% profit margin by 2027.
On Jan. 9, Southwest said longtime CFO Tammy Romo and chief administration officer Linda Rutherford, will step down on April 1. The airline said it would begin a search for Romo's replacement.