Marriott Furloughs Most Corporate Employees Worldwide For 60 To 90 Days


Marriott updated its financial outlook late last week (read more here) and told that hundreds of hotels in the United States would temporarily close in the coming weeks.

Now, furloughs are reaching Marriott’s payroll worldwide. The hotel company expects to layoff temporarily two-thirds of its corporate employees, including close to three thousand at its corporate headquarters in the United States.

You can access Marriott’s consumer page for coronavirus information here.

Here’s an excerpt from the WSJ (access their piece here)

Marriott said the corporate staff furloughs would begin early next month and estimate that they will last 60 to 90 days. During that period, furloughed U.S. corporate employees will receive 20% of their salary, which can be put toward health care and other costs, the spokeswoman said. Corporate employees who stay on are subject to 20% pay cuts and reduced workweeks, the spokeswoman said.

Marriott Chief Executive Arne Sorenson said in a video message to employees on Thursday that Marriott business is now running about 75% below normal levels, making this period more devastating than any other in the history of the nearly century-old hotel company. He said that the financial impact was worse than the post-Sept. 11, 2001, period and 2008-09 financial crisis combined.


Possible corporate bailouts won’t bring these employees to full-time status from furlough anytime soon unless business suddenly picks up that is an improbable scenario.

When revenue is down 75% and could go down even further to 90%, you need to adjust the number of people in your payroll, and certainly, there is no need for all when the business has evaporated.

It is going to be a very tough year for all hospitality sector businesses. We will see many airlines and hotels ceasing operating.