Marriott Announces Further Plans to Cut Costs
Hotel & Resort Donald Wood May 27, 2020
Marriott International announced Wednesday it would be forced to furlough and layoff more employees as the ongoing coronavirus outbreak continues to ravage the hospitality industry.
Officials from Marriott said the viral pandemic has hurt business more than 9/11 and the 2008 financial crisis combined, forcing the company to implement additional measures to reduce costs and improve its liquidity.
Due to the reduced demand and the drastic drop in RevPAR levels, the hotel giant revealed “above-property associates” in the United States who were furloughed and or handed reduced workweek schedules would have the terms extended through October 2.
In addition, Marriott announced a voluntary transition program for associates in the U.S. that allows employees to leave the company to pursue other opportunities. The program is expected to expand to properties all around the world.
While the company did not reveal the number of employees that would be impacted by the cost-cutting measures, a statement from Marriott claimed it “anticipates a significant number of above-property position eliminations later this year.”
Earlier this month, officials announced profits dropped 92 percent as it earned $31 million, or nine cents a share, through the first three months of the year compared to $375 million a year ago.
Marriott CEO Arne Sorenson also released a memo in early May spotlighting the company’s strengthened commitment to cleanliness at its hotels and detailing measures that are now underway to combat the spread of coronavirus.
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