The hospitality sector has been one of the worst hit due to the coronavirus outbreak, restrictions imposed worldwide and the lockdown across nations. Chains, such as Hyatt Hotels Corporation have been trying hard to maintain stability, but in order to deal with these challenging times, the Company has taken some difficult decisions. Hyatt will be restructuring roles in global operations, which will lead to slashing of some jobs in order to recover from the financial burden.
Around 1,300 employees will be impacted by this decision, which will be effective from June 1, 2020. These laid off employees will be eligible to receive severance pay, outplacement services, and benefits commensurate with their years of service.
Releasing an official statement, Mark Hoplamazian, president & CEO, Hyatt, said, “COVID-19 has thrown our industry into unknown territory. While parting ways with our colleagues is excruciating, we must be sensitive to commercial realities so we can continue to fulfill our purpose of care over the long term – through this pandemic and for what lies beyond. Our goal is to emerge from this crisis with strength, and ultimately position our business and our world-class teams for when the hospitality industry rebounds and when our guests and customers once again choose Hyatt.”
The Company has been trying all sorts of measures to survive the challenges that came with the pandemic. It had also begun to deduct the salaries of the senior management team in addition to other cost-cutting measures, to reduce expenditures across the company.