Hyatt Layoffs 2020: 1,300 Workers Cut As COVID-19 Continues To Bear Down On Hotels

As the hotel industry felt the crushing blow of the coronavirus pandemic, which reduced travel demand significantly, Hyatt (H) has announced that it is laying off 1,300 workers globally.

The layoffs, which take effect June 1, are part of a restructuring that Hyatt is undergoing as it has been faced with surmountable challenges as COVID-19 wiped away reservations across its hotel fleet.

Hyatt said it made the “extremely difficult decision” based on the “historic drop in travel demand,” which it expects to continue at a slow pace of recovery.

The hotel chain has also taken measures to cut expenditures companywide, reduce salaries of its senior leadership team and board of directors, and implemented pay reductions for all its corporate workforce.

“COVID-19 has thrown our industry into unknown territory,” Mark Hoplamazian, president and CEO at Hyatt, said in a statement. “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,” he added.

Employees affected by the layoffs will receive severance pay, outplacement services, and benefits inline with their years of service with Hyatt. The company is also offering hotel assistance through the Hyatt Care Fund.

Hyatt reported a net loss of $103 million for Q1 2020 on May 6.

Shares of Hyatt stock were up 0.86% as of 9:45 a.m. EDT on Monday.