Marriott temporarily laying off thousands of employees worldwide
The novel coronavirus pandemic has upended daily life in practically every corner of the earth. Of course, this has meant that demand for travel worldwide has all but dried up, with airlines, hotel companies and cruise lines making drastic cuts across the world.
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Now, unfortunately, we're seeing real ramifications in a worldwide collapse of demand. Marriott International, the world's largest hotel chain, has begun the process of temporarily laying off tens of thousands of workers at hotels that are either closed or still operating at dramatically reduced capacity, according to the Wall Street Journal.
Related: TPG's full coverage of the coronavirus pandemic
News outlets are reporting that furloughed employees will not be paid but will continue to receive healthcare benefits. However, a TPG Lounge reader who knows some of the furloughed workers wrote in to say that Marriott is providing a percentage of pay for eight weeks to help supplement unemployment (plus the healthcare benefits). TPG is trying to confirm that information independently.
Marriott hopes to re-hire as many furloughed workers as it can after the pandemic subsides.
The layoffs affect hotel employees at all levels, and although corporate-level layoffs haven't happened yet, they are "under discussion," as reported by the WSJ.
Hotel occupancy rates, average daily rates and revenue per available room (RevPAR) have all plummeted in recent weeks, as people stay home out of fear of spreading -- and contracting -- the coronavirus.
The news of massive furloughs comes as executives from the largest hotel chains in the county plan to meet with President Trump at the White House to discuss the possibility of the government intervening to save the industry from this unprecedented crisis.