The novel coronavirus (COVID-19) has created unprecedented challenges for the travel and tourism industry. Hilton Worldwide Holdings Inc. (NYSE: HLT) took early and decisive action to boost liquidity and reduce corporate expenditures.
Hilton yesterday announced additional measures to reduce its cost structure, including the intended reduction of approximately 2,100 corporate roles globally, and the extension of previously announced furloughs, reduced hours, and corporate pay reductions for up to an additional 90 days.
Christopher J. Nassetta, President & Chief Executive Officer 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. 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.”
Corporate Team Members whose roles are affected by these actions will receive severance pay, outplacement support, access to online Hilton alumni resources, access to an expedited recruitment process when travel resumes, extended access to the Go Hilton Team Member travel program, and extended Team Member Hilton Honors status.