Hilton Announces More Layoffs, Extends Furloughs and Pay Cuts

Hilton is laying off 2,100 employees around the world as it aims to boost liquidity and reduce corporate expenditures amid the COVID-19 pandemic, the hotel giant announced on Tuesday.

The figure represents more than one-fifth of Hilton’s corporate workforce.

The company, which surpassed Marriott as the world’s most valuable hotel brand last year, is also extending previously announced furloughs, reduced hours and corporate pay cuts for up to an additional 90 days.

Hilston said that impacted employees will receive severance pay, outplacement support, access to online Hilton alumni resources, access to an expedited recruitment process when travel resumes, extended access to the Go Hilton Team Member travel program and extended Team Member Hilton Honors status.

The hospitality industry has been rocked by travel restrictions and diminished demand stemming from the coronavirus crisis, with Marriott, Hyatt and others taking similar actions to preserve their business.

“Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill,” said Hilton’s President and CEO Christopher Nassetta in a statement. “Hospitality will always be a business of people serving people, which is why I am devastated that to protect our business, we have been forced to take actions that directly impact our team members. Our company’s spirit has always been grounded in a culture that supports our team members and delivers hospitality for our guests. We will keep that spirit alive, and when the world begins to travel again, we will be ready to welcome them back.”

There have been some signs of a slow-moving recovery as STR reported U.S. hotel occupancy reached 39.3 percent for the week ending June 6, up nearly three percent from the previous week (36.4 percent) and nearly double that of the week ending April 11 (22 percent).

Like the rest of the sector, Hilton has rolled out enhanced cleaning procedures designed to provide guests with added safety and peace of mind, recently introducing Hilton CleanStay.