Hilton lays off 2.1K employees, extends furloughs

As hotels continue to struggle during the COVID-19 pandemic, McLean-based Hilton Worldwide Holdings Inc. announced Tuesday it is laying off 2,100 corporate employees — more than 20% of its corporate workforce. The company is also extending furloughs, reduced hours and corporate pay reductions, which were first announced in March, for up to an extra 90 days,.

“Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill,” Hilton President and CEO Christopher J. Nassetta said in a statement. “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.”

Corporate employees who are being laid off will receive severance pay, outplacement support, access to Hilton alumni resources and access to other recruitment resources.

“Our company’s spirit has always been grounded in a culture that supports our team members and delivers hospitality for our guests,” Nassetta said in a statement. “We will keep that spirit alive, and when the world begins to travel again, we will be ready to welcome them back.”

Virginia’s hotel industry saw a 68% decrease in revenues in early June, compared to the same time a year ago. Due to the economic crisis, Hilton’s first-quarter revenues dropped by $284 million, as compared to 2019. During Hilton’s Q1 earnings call in May, Nassetta said he expected it to take another two to three years for the company to reach its pre-pandemic demand.

“It’s going to take time and progression,” he said during the earnings call. “It’s going to depend on what happens with reopening. It’s going to depend on what happens with how we fight COVID-19. It’s going to depend on things that are unknowns today.”

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