Just a few days ago Marriott announced plans to furlough two thirds of corporate staff, and now Hyatt is doing the same. The hotel industry is obviously struggling immensely, and has asked for $250 billion in government aid.
It has been revealed that Hyatt will either furlough or significantly reduce the schedules of two thirds of their US corporate employees for the months of April and May (specifically, from April 1 through May 31, 2020). While this is specific to the US so far, similar cuts are expected in other regions.
Those who continue to work during this period will be taking temporary pay cuts.
Hyatt says they considered various options before arriving at the decision to furlough employees. Hyatt's corporate employees' eligibility for healthcare and other benefits won't change, and they may also file for unemployment benefits during this period.
For those on a Hyatt healthcare plan who have been furloughed, Hyatt is taking steps to fund benefit coverage (including employee benefit premiums) for up to two months. Those who are furloughed are encouraged to use paid time off days to cover pay during the furlough period.
Apparently Hyatt is also working with other companies for opportunities for their employees that "leverage their skillsets," including Walmart, PepsiCo, and Albertsons.
While Hyatt has over 100,000 employees worldwide, most of those aren't corporate employees - rather they're working at individual hotels that Hyatt has management contracts for.
Corporate employees would include positions like those working in their contact centers, for example.
Hyatt's CEO and Chairman won't be taking any salaries during the furlough period, while the rest of the company's senior leadership will be taking a 50% pay cut, with money being saved through these measures going into a fund to help employees.
That's a nice gesture.
It's obviously sad to see so many employees being furloughed at this time. Hopefully these furloughs only last for two months as expected, and this doesn't drag on for too long.
If you do call or email Hyatt in the coming days, make sure you're extra nice, because these people are going through a very tough time...
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