Hilton has confirmed its intention to axe 2,100 corporate roles across its global estate.
The group said it has taken the “early and decisive” action to boost its liquidity and reduce corporate expenditures, and comes as the pandemic has “created unprecedented challenges for the travel and tourism industry”.
Additional measures to reduce its cost structure include the extension of previously announced furloughs, reduced hours, and corporate pay reductions for up to 90 additional days.
In its latest update, Hilton said that all affected employees would receive severance pay, outplacement support, access to online Hilton alumni resources, access to an expedited recruitment process, extended access to the Go Hilton Team Member travel programme, and extended Team Member Hilton Honors status.
Christopher J. Nassetta, president and CEO of Hilton, said: “Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill.
“Hospitality will always be a business of people serving people, which is why I am devastated that to protect our business, we have been forced to take actions that directly impact our team members.”
He added: “Our company’s spirit has always been grounded in a culture that supports our Team Members and delivers hospitality for our guests.
“We will keep that spirit alive, and when the world begins to travel again, we will be ready to welcome them back.”