Hyatt Hotels (NYSE:H) said late Monday it would lay off 1,300 people globally as it tries to cope with the coronavirus crisis, which has virtually halted global travel by keeping people indoors.
Hyatt said it had also cut pay for senior management, board members and all employees as part of a restructuring, adding that the staff who were being laid off would be eligible for receive severance pay.
Hyatt’s statement read, "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 June 1, 2020."
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 Dec. 31, 2019.
The hotel industry is estimating a loss of $1.4 billion in revenue every week on account of the outbreak and a 30% drop in hotel occupancy over a year, according to statements from the American Hotel and Lodging Association and the U.S. Travel Association in March.
Back in March, Hyatt furloughed or cut pay for approximately two-thirds of its workforce, responding to catastrophically nosediving demand for hotel rooms during COVID-19's near-shutdown of global travel.
The combination of pay reductions for those still working and no pay for those furloughed, the latter urged to apply for unemployment benefits during their unpaid work hiatus, aimed to help the company maintain liquidity during the crisis.
H shares acquired 66 cents each, or 1.3%, to $50.64.
