Following in the footsteps of Marriott International, Hilton Worldwide and other hospitality companies, Hyatt Hotels confirmed it will furlough or reduce the schedules of many of its corporate employees amid hotel closures and decimated demand due to the coronavirus pandemic.
"Given the financial impact on our business, we have had to make difficult decisions that both support the safety and wellbeing of our colleagues and guests, and protect long-term prospects for Hyatt," confirmed a spokesperson in a statement. "These actions include suspending operations at some hotels, temporary furloughs, as well as pay and work reductions that will impact all Hyatt corporate colleagues across our global regions, across all levels and responsibilities, from 1 April through 31 May."
For furloughed employees on a Hyatt healthcare plan, the company is "taking steps to protect and fund benefit coverage, including employee benefit premiums, for up to two months." Furloughed employees also will be eligible for unemployment benefits.
In addition, the company is setting up a global Hyatt Care Fund, initially seeded by salary reductions of the senior leadership team. During April and May, Hyatt president and CEO Mark Hoplamazian and board chairman Tom Pritzker will forego their entire salaries. The remaining senior leadership team will take a 50 per cent pay cut through the end of May. "The proceeds of the fund will be distributed to those colleagues with the most pressing financial needs due to loss of income," according to the spokesperson.
Bloomberg, which first reported the move, also reported that Hyatt is working with companies in need of additional staff, such as Walmart and Albertsons, to help place its furloughed staff in jobs. Yesterday, Hilton announced it was doing the same, giving displaced workers direct access through its Hilton Workforce Resource Center to temporary jobs at companies such as Amazon, CVS, Lidl and Walgreens.