CHICAGO — Hyatt announced a decision to implement layoffs and restructure roles across its global corporate functions, beginning June 1, 2020, as a result of the challenges created by the COVID-19 pandemic. These actions will impact approximately 1,300 employees globally.
The company has taken a number of measures in an effort to mitigate the impact of the pandemic, including reductions of company-wide expenditures; extended salary reductions for its senior-leadership team and board of directors; and temporary work and/or pay reductions for all corporate employees. “Unfortunately, with increased visibility into the effect the pandemic is having on the hospitality industry, it has become apparent that additional measures are necessary to meet this unprecedented challenge,” reads a statement from the company.
“COVID-19 has thrown our industry into unknown territory,” says Mark Hoplamazian, president and CEO, Hyatt. “While parting ways with our colleagues is excruciating, we must be sensitive to commercial realities so we can continue to fulfill our purpose of care over the long term — through this pandemic and for what lies beyond. Our goal is to emerge from this crisis with strength and, ultimately, position our business and our world-class teams for when the hospitality industry rebounds and when our guests and customers once again choose Hyatt.”
Hyatt employees who have been laid off will be eligible to receive severance pay, outplacement services and benefits commensurate with their years of service. Employees experiencing pressing financial hardships can also seek financial support from the Hyatt Care Fund.