Pause recruitment and summer internships Southwest Airlines Co. (LUV.US) expands cost-cutting measures.

According to a memo seen in the media, in order to cut costs, Southwest Airlines Co. (LUV.US) is suspending corporate recruiting and pausing most summer internships. Southwest Airlines Co. CEO Bob Jordan stated in the memo, "We made great progress in 2024, we have a lot of tangible momentum." He added that the company still has a long way to go to reach its target of leading industry profit margins, "every dollar is important, as we continue to strive for outstanding financial performance." Before cutting labor costs, Southwest Airlines Co. decided last week to sell and lease back 36 Boeing Company planes to "monetize the residual value of part of the fleet" to preserve cash. Struggling with declining profitability, issues with Boeing Company's planes, and criticisms from activist investor Elliott Management about poor management, Southwest Airlines Co. has taken action to address its poor financial performance. This includes accelerating the retirement of Chairman Gary Kelly, appointing six new board members chosen by Elliott, and implementing operational reforms such as adding red-eye flights, new seating policies, and establishing global partnerships with European airlines to appease Elliott. While these measures have helped Southwest Airlines Co. stock price rebound from a low of $23.58 last summer, the stock price is still down 30% from its peak.