Hyatt Hotels Corp said Monday night that it would lay off 1,300 people worldwide as it tries to cope with the coronavirus crisis, which virtually halted travel around the world by keeping people indoors.
Hyatt said he also cut the salaries of senior management, board members, and all employees as part of the restructuring, adding that the staff was being laid off would be eligible for severance pay.
"Because of the historic drop in travel demand and the slow rate of recovery expected, Hyatt has made a very difficult decision to implement layoffs and restructuring roles in the global corporate functions, as of June 1, 2020," Hyatt said in a statement.
The hotel chain reported a wider-than-expected quarterly loss last week and suspended its dividend and share buyback program. It had 55,000 employees as of December 31, 2019, according to Refinitiv Eikon data.
The hotel industry estimates a $ 1.4 billion loss in revenue every week on account of the outbreak and a 30% drop in hotel occupancy over a year, according to data from the American Association Hotel and Lodging Association and the US Travel Association in March.
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