Marriott has provided an update to its global workforce, in which it warned of significant job losses later this year.
In a media statement the group said on Wednesday that “The Covid-19 pandemic is having a more severe and sustained financial impact on Marriott’s business than 9/11 and the 2008 financial crisis, combined”, and warned that it does not expect business levels to return until 2022 at the earliest.
“Today, Marriott informed its associates that the company will need to implement additional measures in light of the increasing likelihood that it will be some time before lodging demand and RevPAR levels recover,” the statement said.
“Specifically, the company informed above-property associates in the United States that furloughs and reduced work week schedules which began in April will be extended through October 2, 2020. Marriott is also rolling out a voluntary transition programme for on-property and above-property associates in the United States who may choose to leave the company to pursue other opportunities.
“Similar voluntary programmes are being considered in other parts of the world. Given the company’s expectation that prior levels of business will not return until beyond 2021, the company anticipates a significant number of above-property position eliminations later this year.
“The company is not able at this time to predict how many associates will be affected by these separations or any resulting charges or cost savings.”
Earlier his month Marriott reported a downturn in RevPAR (revenue per available room) in April of around 90 per cent, with roughly a quarter of its properties closed worldwide.
The group has formed what it refers to as the Global Cleanliness Council, a “multi-pronged platform” designed to “elevate its cleanliness standards and hospitality norms and behaviours to meet the new health and safety challenges presented by the current pandemic environment”.