MCLEAN, Va. — Hilton Worldwide Holding Inc. has announced new decisive actions to protect its business and support employees through the COVID-19 pandemic.
The company reports operations have been suspended across many managed and franchised hotels, and those hotels that remain open have reduced services due to decreased occupancy.
At the corporate level, Hilton has taken actions to reduce expenses and preserve liquidity. These include president and CEO, Christopher Nassetta, forgoing his salary for the remainder of 2020 and implementing a 50-per-cent pay cut for the company’s executive committee for the duration of the current crisis. Hilton is also eliminating non-essential spending, including capital expenditures.
Beginning April 4, many of Hilton’s corporate employees will have reduced schedules or be furloughed for up to 90 days. These employees will maintain their health benefits and, subject to local regulations, will also be eligible for unemployment benefits. Those not furloughed will have their pay reduced by up to 20 per cent for the duration of the crisis.
To support impacted employees, Hilton recently launched the Hilton Workforce Resource Center, offering direct access to temporary jobs (currently U.S. only). The company has also activated its Team Member Assistance Fund to help employees who have suffered a direct impact from COVID-19 or have an impacted family member.
Hilton is also providing various forms of support to the broader global community through donations of excess food and by assisting local and national governments to provide housing for first responders and health care workers. The company’s charitable arm, the Hilton Effect Foundation, is also investing in grants to support organizations fighting the spread of infection and aiding communities in need through organizations such as World Central Kitchen, Direct Relief and Project Hope.