Marriott International issued an updated statement to its global workforce on May 27. The company stated that the COVID-19 pandemic is proving to have a more severe and sustained financial impact on its business than 9/11 and the 2008 financial crisis combined. As a result, Marriott announced it would need to implement additional measures before its demand and revenue per available room recover.
Those measures include extending furloughs,which were announced in April, through October 2. Marriott is also rolling out a voluntary transition program for on-property and above-property associates in the United States who may choose to leave the company to pursue other opportunities.
“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,” according to the statement. “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.”
Photo: Courtesy of Marriott International