Hotel giant, Hyatt is laying off 1,300 people

Global hotel giant,Hyatt Hotels Corp., said late Monday it would lay off 1,300 people globally as it tries to cope with the coronavirus crisis, which has virtually halted global travel by keeping people indoors.

The group said it had also cut pay for senior management, board members and all employees as part of a restructuring, adding that the staff who were being laid off would be eligible for receive severance pay.

“Due to the historic drop in travel demand and the expected slow pace of recovery, Hyatt has made the extremely difficult decision to implement layoffs and restructure roles across its global corporate functions, beginning June 1, 2020,” Hyatt said in a statement.

The hotel chain reported a wider-than-expected quarterly loss last week and suspended its dividend and share buyback program. It had 55,000 employees as of Dec. 31, 2019, according to Refinitiv Eikon data.

According to Data compiled by Reuters, the industry is losing about $1.4 billion weekly while occupancy has dropped by 30%.