Hilton is laying off 2,100 employees worldwide, intending to boost liquidity, and reduce corporate expenditures during the COVID-19 pandemic. The figure represents more than one-fifth of Hilton’s corporate workforce.

 The company, which surpassed Marriott as the world’s most valuable hotel brand last year, is extending previously announced furloughs, reducing hours and corporate pay cuts for up to an additional 90 days.

 The impacted employees will be compensated

Hilton said that the affected employees will receive severance pay, outplacement support, access to online Hilton 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. Travel restrictions due to the COVID-19 has deeply affected the hospitality sector and its demand. Marriott, Hyatt, and others are taking similar actions to preserve their business.

Hilton’s President and CEO Christopher Nassetta stated: “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.”

STR has reported U.S. hotel occupancy reaching 39.3% for the week ending June 6, showing some improvements. Hilton has also implemented enhanced cleaning procedures through Hilton CleanStay. 

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