Southwest Airlines Cuts Back On Hiring Under Pressure From Elliott Investment

Southwest Airlines has introduced cost-cutting measures in 2025, with the company’s leadership aiming to improve shareholder returns in the near future.
Cost-cutting measures
CNBC, citing an internal memo that was seen by the outlet, reported that Southwest Airlines is suspending corporate hiring and promotions, summer internships, and employee get-togethers during the summer to reduce its operating costs and improve financial performance.
Bob Jordan, the President and Chief Executive Officer (CEO) of Southwest Airlines, said that every single dollar mattered as the company continued to claw back to better financial performance. Further changes could be coming when they make sense, Jordan added, according to the CNBC report. Simple Flying has approached Southwest Airlines for comment.
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While the airline will publish its Q4 2024 and full-year results on January 30, its Q3 2024 results showed that year-on-year (YoY), the carrier’s passenger revenue yield per revenue passenger miles (RPM) was 17.01¢, while operating expenses per available seat mile (ASM) was 15.11¢.
In total, the airline’s quarterly revenue was $6.87 billion, with operating expenses coming just shy of that sum at $6.83 billion. Southwest Airlines ended the three-quarter period with a net income of $67 million.
During the first nine months of 2024, the company’s revenues and operating expenses were $20.553 billion and $20.51 billion, resulting in a net income of $204 million. During the same nine-month period in 2023, Southwest Airlines’ net income was $717 million.
As of Q3 2024, Southwest Airlines had 73,463 full-time equivalent employees (-1% YoY) and 811 aircraft (-0.7% YoY).
Related Southwest Airlines Appoints 5 Elliott Representatives To Board Of Directors The proxy battle at Southwest Airlines is seemingly over, with the airline appointing six new and independent members to its board.
Overstaffed
During the company’s investor day in September, Jordan admitted that Southwest Airlines’ recent financial performance was subpar, with the airline being affected by external and some controllable factors.
“I want to be clear that we own those challenges, and the plan we’re implementing is designed to ensure that we are positioned to navigate them and emerge even stronger.