Hilton Worldwide to lay off 2,100 corporate employees

17th June 2020 (Last Updated June 17th, 2020 16:20)

Hilton Worldwide Holdings is planning to cut around 22% of its corporate workforce, or 2,100 jobs, in a bid to reduce its costs.

Hilton Worldwide to lay off 2,100 corporate employees
Hilton has decided cut its workforce in an effort to reduce its cost structure. Credit: Ricardo Meza.

Hilton Worldwide Holdings is planning to cut around 22% of its corporate workforce, or 2,100 jobs, in a bid to reduce its costs.

This announcement comes as the global travel industry is being impacted by Covid-19 outbreak.

With travellers cancelling bookings due to the pandemic, several hotel firms such as Marriott International and Hyatt Hotels have axed jobs or furloughed thousands of employees.

The laid off workers of Hilton will get severance pay and outplacement support.

Besides furloughs, Hilton is extending reduced working hours, and corporate pay cuts for three months.

Hilton Worldwide executives will continue taking a 50% pay cut for the next 90 days, while its CEO Christopher Nassetta will forgo his pay for the rest of this year.

Nassetta has been quoted by the Forbes as saying: “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.”

Last month, Nassetta told investors that it is likely for the company to take around three years to get back to pre-Covid levels of demand for its hotel rooms.