By Anne White
The Hyatt has begun implementing layoffs and restructuring roles across its global corporate functions, as of June 1, 2020. These actions will impact around 1,300 people around the world.
Since the start of the COVID-19 pandemic, Hyatt has taken numerous actions in an effort to meet challenges the industry is facing including reductions of company-wide expenditures, extended salary reductions for the Senior Leadership Team and Board of Directors, and temporary work and/or pay reductions for all corporate colleagues.
“COVID-19 has thrown our industry into unknown territory,” said Mark Hoplamazian, President and Chief Executive Officer, 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.”
Laid off Hyatt colleagues will be eligible to receive severance pay, outplacement services, and benefits commensurate with their years of service. Colleagues experiencing pressing financial hardships may also seek financial support from the Hyatt Care Fund.
In a letter to First Selectman Fred Camillo, Sherry Hicks-Buckles, General Manager of the Hyatt Regency Greenwich said “The COVID-19 pandemic initially prompted numerous restrictions on travel and group meetings that resulted in a drop in our business. As a business that caters to global travelers and hosts large events around the world, this pandemic impacts us immensely. Due to this crisis, employees at the Hotel have been impacted by temporary furloughs, beginning on 3/22/20.
“We were hopeful that the restrictions and associated loss in revenue would be temporary.
“Since that time, it has recently become apparent that there will be longer-term revenue impacts as a result of the continued spread of the virus, extensions of various government-mandated “shelter-in-place” and “mass gathering” orders, cancellation of conferences and events, and significant decline in travel, all of which have resulted in the sudden and unexpected effective shutdown of much of our business.
“While there are encouraging signs that our economy can begin to reopen in some areas, it has now become clear that the demand for travel, events, and hospitality services will take substantially longer to resume than previously anticipated. With likely on-going social distancing until a reliable COVID-19 vaccine or treatment becomes available, we cannot predict when our way of doing business will return to “normal.”
“With such a significant reduction in our business in a rapidly evolving situation, we have to make painful choices that would have seemed unthinkable just a short time ago. The reality is we need to take further action to support the long-term operation of the company in a completely new operating environment.
We initially anticipated that employee furloughs at the Hotel would be temporary. Due to the sudden, dramatic, and unforeseeable additional impact of this pandemic on our business that is outside of our control, unfortunately, we must now plan for extended layoffs that may exceed 6 months.
“While our hope remains that some or all of these layoffs will be temporary and last less than 6 months, we must prepare for longer-term employment losses. This is a partial closure; not all employees at the Hotel will be impacted.”
