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WSJ: Marriott to Furlough Thousands of Corporate Jobs

WSJ: Marriott to Furlough Thousands of Corporate Jobs
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By    |   Sunday, 22 March 2020 01:51 PM

Marriott International Inc. reportedly plans to furlough thousands of corporate employees at its headquarters and other cities around the world.

The move, reported by the Wall Street Journal, would continue a massive shrinking of payroll this week.

The coronavirus outbreak is costing U.S. hotels $1.4 billion a week as it crushes demand for travel, according to data that industry executives plan to present Tuesday when they visit the White House.

As the world’s largest hotel company with nearly 1.4 million rooms world-wide, 30 brands and about 7,300 properties, Marriott has been slammed hard by the collapse in global travel as companies halt business travel, conference organizers call off events and vacation plans are put on hold.

A Marriott spokeswoman told the Journal that the company was furloughing about two-thirds of its 4,000 corporate employees at the company’s Bethesda, Md., headquarters.

Marriott (MAR) is also furloughing about two-thirds of its corporate staff abroad, though the spokeswoman said she couldn’t immediately provide the number of Marriott corporate overseas jobs.

Marriott said the corporate staff furloughs would begin early next month and estimate that they will last 60 to 90 days. During that period, furloughed U.S. corporate employees will receive 20% of their salary, which can be put toward health care and other costs, the spokeswoman said. Corporate employees who stay on are subject to 20% pay cuts and reduced workweeks, the spokeswoman told the Journal.

Late last week, Marriott said it has started to furlough hotel staff in an effort that could affect tens of thousands of employees, Bloomberg said.

A spokeswoman for the company, which employs roughly 130,000 associates across its managed hotels, said the workers would keep health benefits for now. The company is shuttering some hotels and needs fewer employees at the properties that remain open, she said.

“As travel restrictions and social distancing efforts around the world become more widespread, we are experiencing significant drops in demand at properties globally with an uncertain duration,” the company said in a statement. “We are adjusting global operations accordingly which has meant either reduction in hours or a temporary leave for many of our associates at our properties.”

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Marriott International Inc. reportdley plans to furlough thousands of corporate employees at its headquarters and other cities around the world.
marriott, furlough, thousands, corporate, jobs
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2020-51-22
Sunday, 22 March 2020 01:51 PM
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