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BENGALURU (REUTERS) – Hyatt Hotels Corp said late Monday (May 11) that it would fire 1,300 people worldwide as it tries to cope with the coronavirus crisis, which has practically halted world travel by keeping people inside.
Hyatt said he had also cut the salaries of senior management, board members and all employees as part of a restructuring, adding that the personnel being fired would be eligible for severance pay.
“Due to the historical decline in travel demand and the slow rate of recovery expected, Hyatt made the extremely difficult decision to implement the layoffs and restructure roles in its global corporate functions, effective June 1, 2020,” he said. Hyatt in a statement.
The hotel chain reported a quarterly loss higher than expected last week and suspended its dividend and stock buyback program. It had 55,000 employees as of December 31, 2019, according to data from Refinitiv Eikon.
The hotel industry estimates a loss of $ 1.4 billion (S $ 2 billion) in revenue each week from the outbreak and a 30 percent drop in hotel occupancy for a year, according to statements by the American Hotel and Lodging. Association and the United States Travel Association in March.
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