Hyatt Hotels announced on Monday that 1300 employees globally will be axed, starting in June.
Hyatt said it had also cut pay for senior management, board members and all employees in corporate offices as part of a restructuring, adding that the staff who were being laid off would be eligible for severance pay, outplacement services and benefits commensurate with their years of service.
Employees experiencing pressing financial hardships may also seek financial support from the Hyatt Care Fund.
“Due to the historic drop in travel demand and the expected slow pace of recovery, Hyatt has made the extremely difficult decision to implement layoffs and restructure roles across its global corporate functions, beginning 1 June, 2020,” Hyatt said in a statement.
"COVID-19 has thrown our industry into unknown territory," said Mark Hoplamazian, Hyatt's president and CEO.
"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 had 55,000 employees as of 2019, according to Refinitiv Eikon data.
The hotel industry is estimating a loss of US$1.4 billion in revenue every week on account of the pandemic and a 30% drop in hotel occupancy over a year, according to statements from the American Hotel and Lodging Association and the US Travel Association in March.
This story was first published by Reuters.