HILTON LAYS OFF 22% OF CORPORATE STAFF

Hilton Hotels is laying off 2,100 employees, or roughly 22% of its corporate workforce, as the lingering effects of COVID-19 continue to depress demand for leisure and corporate travel, with US hotels losing $30 billion in revenue and nearly 60% of rooms is empty, Jordan Valinsky reported on June 16 for CNN Business.

The hotel chain is also extending the existing furloughs for many of its corporate staff for an additional 90 days. Hilton announced the initial furloughs, as well as temporary pay cuts for executives, in late March.

“Never in Hilton's 101-year history has our industry faced a global crisis that brings travel to a virtual standstill," CEO Christopher Nassetta said in a press release, adding he was "devastated" by the decision.

COVID-19 all but destroyed the global tourism industry, resulting in temporary hotel closures, border restrictions and flight reductions. Large hotel chains were some of the largest victims, including rivals Marriott and Hyatt. Marriott, the world's largest hotel chain, also furloughed some employees in March. Last month, it said the pandemic is "having a more severe and sustained financial impact on Marriott's business than 9/11 and the 2008 financial crisis, combined." Hyatt also announced last month it was axing 1,300 employees "due to the historic drop in travel demand and the expected slow pace of recovery."