Hilton to let go thousands of corporate staff

Huntley Mitchell

Huntley Mitchell

Hilton has announced additional measures to reduce its cost structure, as the COVID-19 pandemic continues to wreak havoc on the hospitality industry.

The new measures include the “intended reduction” of approximately 2,100 corporate roles globally and the extension of previously announced furloughs, reduced hours, and corporate pay reductions for up to an additional 90 days.

Hilton said corporate team members whose roles are affected by these actions will receive severance pay, outplacement support, access to the company’s online alumni resources, access to an expedited recruitment process when travel resumes, extended access to the Go Hilton Team Member travel program, and extended Team Member Hilton Honors status.

Hilton president and CEO Christopher Nassetta said: “Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill.

“Hospitality will always be a business of people serving people, which is why I am devastated that, to protect our business, we have been forced to take actions that directly impact our team members.

“Our company’s spirit has always been grounded in a culture that supports our team members and delivers hospitality for our guests. We will keep that spirit alive, and when the world begins to travel again, we will be ready to welcome them back.”

For the three months of 2020, Hilton’s RevPAR fell 22.6 per cent, and management and franchise fee revenues decreased 18 per cent.

Hilton’s net income and adjusted earnings for Q1 were US$18 million and US$363 million respectively, compared to US$159 million and US$499 million respectively in the prior corresponding period.

Featured image: iStock/LPETTET