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Hyatt Hotels announced furloughs and pay cuts as the hotel industry reels from the coronavirus pandemic.
Hyatt on Wednesday said the pay cuts would affect all of its employees from April 1 through May 31. A company spokesperson was not immediately available to comment on the amount of the pay cuts.
The company will also impose temporary furloughs, though it was not immediately clear how many employees would be affected. Hyatt is also temporarily closing some locations.
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.
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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.
CEO Mark Hoplamazian and Chairman Tom Pritzker are giving up 100% of their salaries, while the rest of Hyatt’s senior executives are taking 50% salary cuts through May.
The amount of executive salary reductions will be devoted to a fund that will be used to ease the financial pain for Hyatt’s most vulnerable employees.
“Our ultimate goal is to emerge in a position of strength coming out of this crisis, with our world-class teams as intact as possible across the global Hyatt family,” the company said.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
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