Luxury hotel chain Hilton Worldwide recently said that it would reduce its corporate workforce by 22% due to the impact of the coronavirus pandemic on the hospitality industry. The move is expected to impact about 2,100 employees globally.
The hospitality industry has been amongst the worst affected due to the coronavirus pandemic and subsequent lockdowns. Other than Hilton, Rivals Marriott International Inc and Hyatt Hotels Corp have also laid off or furloughed thousands of employees as bookings plunged.
Along with the layoffs, Hilton said it is extending previously announced furloughs, reduced hours, and corporate pay cuts for up to an additional three months.
Hilston said that impacted employees will receive severance pay, outplacement support, access to online Hilton alumni resources, access to an expedited recruitment process when travel resumes, extended access to the Go Hilton Team Member travel program and extended Team Member Hilton Honors status.
“Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill. Hospitality will always be a business of people serving people, which is why I am devastated that to protect our business, we have been forced to take actions that directly impact our team members. Our company’s spirit has always been grounded in a culture that supports our team members and delivers hospitality for our guests. We will keep that spirit alive, and when the world begins to travel again, we will be ready to welcome them back,” said Hilton’s President and CEO Christopher Nassetta in a statement.
Most hotel operators have signaled that a fall in bookings would hit a bottom in the second quarter, with a turnaround already taking place in key markets such as China, as the world’s second-largest economy gradually reopens for business.
Hilton’s corporate staff numbered 9,600 workers globally, while total employees were 173,000 at the end of 2019.
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