Hyatt Hotels Corp. (H.N) announced on Monday that it would terminate 1,300 employees worldwide beginning on June 1. The move comes after a sharp fall in global travel struck the hospitality industry as people stay home to prevent the spread of the coronavirus.
Hyatt Hotels implemented numerous restructuring measures to save money by making cuts to executive salaries and reducing other corporate employees’ pay. The company added that workers are eligible to receive severance pay, making it clear that these are permanent layoffs and not just furloughs.
On Tuesday, a Hyatt spokesperson stated that the cuts represent roughly a third of the staff at its Chicago headquarters.
“Due to the historic drop in travel demand and the expected slow pace of recovery, Hyatt has made the extremely difficult decision to implement layoffs and restructure roles across its global corporate functions, beginning June 1, 2020,” the company said.