Southwest Airlines CEO Bob Jordan told employees the company is pausing corporate hiring and promotions, suspending most summer internships and canceling some employee team-building activities dating back to the 1980s to cut costs and boost profits .

“Every dollar counts as we continue to work toward a return to strong financial performance,” Jordan said in Monday’s report, which was seen by CNBC.

He said the company would postpone other events “where reasonable.”

A Southwest spokesperson confirmed the changes.

“We will continue to continually evaluate hiring needs to determine when it makes sense for businesses to resume hiring,” she said in an email.

As part of a cost-cutting effort, Southwest is suspending employee “assemblies,” the company’s team-building tradition since 1985 in which employees hear from airline leaders about the year’s goals and enjoy food and entertainment.

Southwest has been under pressure for months last year from activist Elliott Management, which called on the airline to replace its chief executive. this Both parties reached a settlement In October, Elliott won five Southwest board seats but lacked control, while Jordan remained in the top job.

“We have made great progress in 2024 and we have a lot of real momentum…but we are still far from our goal of returning to industry-leading margins,” Jordan wrote. “A key risk in 2025 is acting as if The urgency has passed and therefore the focus and energy for 2024 cannot be maintained.”

The airline last year established Plan to increase profits These include abandoning the more than 50-year-old open seating model in favor of assigned seats and creating an area with extra legroom, flying night flights and more aggressively cutting unprofitable routes.

In September, the company Cut flights Jobs were reduced from the base in Atlanta, although staff could apply to work at other bases.

Southwest Airlines is scheduled to report fourth-quarter results on January 30. The airline’s shares have risen 14% in the past 12 months, while unitedThe share price rose more than 160% Delta Air Lines and American Airlines Increases of approximately 70% and 33% respectively.