Hyatt Hotels Corp. is restructuring its global organization and laying off 1,300 corporate employees in the wake of the historic drop in travel demand due to the coronavirus pandemic, the company announced late Monday. A statement on the company's website noted that Hyatt had taken numerous actions to mitigate the loss of demand, including reducing expenditures and salaries, but "it has become apparent that additional measures are necessary to meet this unprecedented challenge."
"Covid-19 has thrown our industry into unknown territory," said Hyatt president and CEO Mark Hoplamazian in the 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."
Laid-off employees will be eligible to receive severance pay, outplacement services and benefits commensurate with their years of service, according to the company.
Hyatt's first-quarter revenue per available room declined 28.1 percent year over year. The company also has several meetings properties, a segment particularly hard-hit by Covid-19, with many destinations showing up to a 100 percent decline in group business, per STR.
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