Hotel chain Hilton Worldwide Holdings Inc said on Tuesday it would cut about 22% of its corporate workforce, or 2,100 jobs, following the coronavirus outbreak that has ravaged the global travel industry.
Hilton’s announcement comes as the hotel industry has been among the worst hit by the pandemic, with travellers forced to cancel bookings and stay at home due to government enforced lockdowns.
Same goes to Marriott International Inc and Hyatt Hotels Corp, which have also laid off thousands of employees as bookings plunged.
Most hotel operators have significantly fall in bookings and 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 said it is also extending previously announced furloughs, reduced hours, and corporate pay cuts for up to an additional three months.
“Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill,” Chief Executive Officer Christopher Nassetta said.
Hilton’s corporate staff numbered 9,600 workers globally, while total employees were 173,000 at the end of 2019.
Source : Forbes