Marriott fears further job cuts as pandemic impact deepens
The hospitality group said furloughing will continue through October
Marriot International has released another COVID-19 update as the pandemic continues to stunt business. In its latest release, Marriott has warned it will continue to furlough staff throughout the year.
The group reiterated that “The COVID-19 pandemic is having a more severe and sustained financial impact on Marriott’s business than 9/11 and the 2008 financial crisis, combined,” an analogy previously made by Marriott International CEO and president Arne M. Sorenson at the start of the pandemic.
Despite the group’s best efforts and a slew of cost-cutting measures, it revealed it intends to furlough more staff in the United States and reduce working schedules until October 2 this year. Marriott is also rolling out a voluntary transition programme for on-property and above-property staff in the United States who may choose to leave the company to pursue other opportunities. It added this programme is being considered for other parts of the world.
Lodging demand and RevPAR levels for Marriott are expected to not recover fully until beyond 2021, with “a significant number of above-property position eliminations later this year.”
The group ended by saying it is unable to predict how many employees will be let go as a result of the pandemic.