U.S. discount carrier Southwest Airlines (LUV) is pausing corporate hiring to cut costs and improve its profit margins.
The Dallas, Texas-based airline is also suspending promotions and its summer internship program and eliminating some employee team-building events to save money.
As part of the cost cutting initiatives, Southwest is pausing its “employee rallies,” which are company-wide team-building events that date back to the 1980s.
Southwest Airlines remains under pressure from activist shareholder Elliott Investment Management, which has called for a leadership change at the carrier.
The two sides settled in October with Elliott securing five Southwest Airlines board seats.
The airline last year outlined a plan to increase profits that includes cutting its more than 50-year-old open seating model in favor of assigned seats, and creating a section with extra legroom, operating overnight flights, and eliminating unprofitable routes.
In September, Southwest slashed its flights from Atlanta, Georgia and announced job cuts.
News of the hiring freeze comes ahead of Southwest Airlines’ fourth-quarter financial results that are scheduled to be released on Jan. 30.
The stock of Southwest Airlines has risen 14% over the last 12 months to trade at $32.66 U.S. per share.
