Hyatt announces furloughs and pay cuts

Hyatt Hotels has announced furloughs and pay cuts as the hotel industry reels from the corona virus pandemic.

Hyatt on Wednesday said the pay cuts would affect all of its employees from April 1 through May 31. The company did not provide details on the amount of the pay cuts.

The company will also impose temporary furloughs or significantly cut the schedules of two-thirds of its U.S. corporate employees. The chain had about 55,000 employees at the end of 2019, according to its annual report.

Given the financial impact on our business, we have had to make difficult decisions that both support the safety and wellbeing of our colleagues and guests, and protect long-term prospects for Hyatt,” the company said in a statement.

The move comes after rival hotel chains Marriott and Hilton also recently confirmed plans to place thousands of workers on furloughs. The hotel industry has been smothered by the COVID-19 crisis, which has led to massive room cancelations.

Hyatt said its workers will still be eligible for health care benefits during this period. Furloughed employees can apply for unemployment benefits, though the company said it would encourage them to use vacation days to get full compensation while they’re furloughed.

A middle-aged British businessman who stayed at the Grand Hyatt in Singapore in January unwittingly carried the new virus across two continents and unwittingly infected at least five people upon his return to Europe.