Hyatt Hotels Corp. will implement layoffs and restructure roles across its global corporate functions beginning June 1. The company said the moves, which will impact around 1,300 employees around the world, are due to the historic drop in travel demand because of the COVID-19 pandemic and the expected slow pace of recovery.
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Since the start of the COVID-19 pandemic, Hyatt has taken numerous actions in an effort to meet the challenges the industry is facing including reductions of companywide expenditures, extended salary reductions for the senior leadership team and board of directors, and temporary work and/or pay reductions for all corporate employees. But additional measures are necessary to meet the challenge, according to Mark Hoplamazian, Hyatt’s president/CEO.
“COVID-19 has thrown our industry into unknown territory,” he said. “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.”
Laid-off Hyatt colleagues will be eligible to receive severance pay, outplacement services and benefits commensurate with their years of service. Those experiencing pressing financial hardships may also seek financial support from the Hyatt Care Fund.