Following similar steps taken by Marriott International and Hyatt Hotels Corp., Hilton Worldwide announced Thursday that effective April 4, many of its employees will be on reduced schedules or will be furloughed for up to 90 days as a result of the effects of the Covid-19 outbreak. During this time, employees will maintain their health benefits and, subject to local regulations, also will be eligible for unemployment benefits. Those not furloughed will have their pay reduced by up to 20 percent for the duration of the crisis.
President and CEO Christopher Nassetta will forego his salary for the remainder of 2020, according to a statement. The executive committee will take a pay cut of 50 percent for the duration of the crisis.
The company has suspended operations at many hotels in cities across the U.S. and previously had pulled its 2020 guidance, due to the coronavirus pandemic.
Through the Hilton Workforce Resource Center, employees are being given access to more than 500,000 temporary jobs at more than 30 companies, including Amazon, CVS, Albertsons and Walgreens. The company hopes to expand this program globally and welcome back employees when travel resumes.
The company also has activated its Team Member Assistance Fund to help those who have suffered a direct impact, or have an impacted family member, from Covid-19. Employees have been making monetary and points donations, which are converted to cash, to the fund since the crisis began in China.
To aid relief efforts, Hilton has been donating excess food to local pantries and assisting local and national governments to provide housing for first responders and health care workers. The company's charitable arm, the Hilton Effect Foundation, is investing in grants to support the organizations fighting the spread of infection and aiding communities in need.
In addition, Hilton has extended its cancellation policy for all reservations through June 30, 2020.