AUGUST 15, 2024 — ELIOT MANAGEMENT SEEKING BOARD CONTROL
Elliott Investment Management is launching a proxy fight with Southwest Airlines and plans to nominate 10 candidates for the 15-member board of directors. If Elliot captures the board, look for changes in top management, divestiture of underperforming assets, ruthless cost-cutting, including drastic personnel reductions, and upstreamed dividends to investors.
10, 2024 — MAJOR TROUBLE AHEAD
Activist Elliott Management has become the largest single stockholder with a $1.9 billion stake in the company and plans to push for leadership changes at the struggling company.
For those unfamiliar with Elliot, look for changes in top management, divestiture of underperforming assets, ruthless cost-cutting, including drastic personnel reductions, and up-streamed dividends to investors.
MAY 3, 2024 — Original post…
Dallas, Texas-based Southwest Airlines, a low-cost airline, has announced that it will stop service at Syracuse Hancock International Airport in upstate New York, Bellingham International Airport in Washington state, Cozumel International Airport in Mexico, and George Bush Intercontinental in Houston and reduce service to Atlanta’s Hartsfield-Jackson International and Chicago’s O’Hare International.
As a result of these route changes, the airline plans to lay off 2,000+ employees.
According to Bob Jordan, President and Chief Executive Officer...
"While it is disappointing to incur a first quarter loss, we exited the quarter with healthy profits and margins in the month of March. We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations.
Achieving our financial goals is an immediate imperative. The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025. We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our Customers.
To improve our financial performance, we have intensified our network optimization efforts to address underperforming markets. Consequently, we have made the difficult decision to close our operations at Bellingham International Airport, Cozumel International Airport, Houston's George Bush Intercontinental Airport, and Syracuse Hancock International Airport. I want to sincerely thank our Employees, the airports, and the communities for all their incredible support over the years.
Additionally, we are evaluating options to enhance our Customer Experience as we study product preferences and expectations, including onboard seating and our cabin. And, we are implementing cost control initiatives, including limiting hiring and offering voluntary time off programs. We now expect to end 2024 with approximately 2,000 fewer Employees as compared with the end of 2023."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
