A ramp agent directs a Southwest Airlines Boeing 737-800 airplane in to a gate at Baltimore-Washington Airport. Photo: Getty Images

Southwest Airlines Co.’s top finance executive plans to step down after more than 33 years with the carrier, extending a leadership overhaul in the wake of an activist campaign by shareholder Elliott Investment Management.

Following a bitter battle with an activist investor, Southwest is pausing corporate hiring and most summer internships to cut costs and improve margins.

Southwest Airlines is cutting costs. It's pausing corporate hiring, summer internships, and a team-building tradition. The move comes after a dispute with the activist firm Elliott Investment Management. Southwest Airlines is pausing corporate hiring to cut costs, a company spokesperson confirmed to Business Insider.

Gateway Investment Advisers LLC lowered its position in Southwest Airlines Co. (NYSE:LUV – Free Report) by 45.3% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission.

On Friday, Southwest Airlines Co (LUV) stock saw a decline, ending the day at $32.1 which represents a decrease of $-0.06 or -0.19% from the prior close of $32.16. The stock opened at $32 and touched a low of $31.86 during the day, reaching a high of $32.33. The volume of shares traded was 10.28 million exceeding the average volume of 6.96 million.

Tammy Romo will leave the company on 1 April, a move coming as the Dallas-based airline progresses with revamping its business following several years of lagging profits.

CEO Bob Jordan said, "Every single dollar matters as we continue to fight to return to excellent financial performance."

The leadership changes come after the airline's executive chairman was pressured to retire early last year and two-thirds of the company's board was replaced.

Southwest Airlines says it's not filling some jobs and summer internships this year as the company looks to lower costs.

The Department of Transportation is suing the airline for what it characterized as months of "chronically delayed" flights — those that arrive at least 30 minutes late more than half the time.

Southwest said that it will continue to evaluate its hiring needs on an ongoing basis to determine when it makes the most sense to restart hiring.