“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.”
2,100 Jobs Cut at Hilton Corporate Offices
The paragraph you just read was from this official press release from Hilton Worldwide Holdings Incorporated; and the quote is attributed to Christopher Nassetta — who is the current president and chief executive officer of Hilton — in response to the constantly evolving situation pertaining to the current 2019 Novel Coronavirus pandemic, which has created unprecedented challenges for the travel and tourism industries.
The announcement from earlier today revealed that the global lodging company “took early and decisive action to boost liquidity and reduce corporate expenditures” and its cost structure — including the intended reduction of approximately 2,100 corporate roles worldwide; and the extension of furloughs which had been previously announced, reduced hours, and corporate pay reductions for up to an additional 90 days.
In an effort to soften the blow to affected employees, team members of the corporate offices whose roles are affected by these actions 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.
Hilton Worldwide Holdings Incorporated unfortunately joins other multinational lodging companies — including Marriott International, Incorporated and Hyatt Corporation — in having to cut costs by employee furloughs and other tough measures…
…which means that a recovery in the travel and tourism industries may have a longer economic recovery from the effects of the current 2019 Novel Coronavirus pandemic.
If you are traveling within the near future, expect to experience significant reductions in services and amenities at hotel and resort properties worldwide — such as this recent report by FlyerTalk member hugolover that executive lounge access privileges were replaced with a voucher for a drink and a snack as one of countless examples.