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Coronavirus

Hilton Cuts Nearly a Quarter of Its Corporate Workforce: Will It Regret the Deep Layoffs?

Cameron Sperance

Photo Credit: Hilton plans to lay off about 22 percent of its corporate staff due to coronavirus-related impacts on travel. Wikimedia / Altercari

Skift Take

There is always the potential of going too far with layoffs during an economic downturn. But coronavirus has upended the travel industry with so much uncertainty that Hilton's sizable layoffs reflect a narrowed corporate focus on near-term health, survival, and reopening.

Coronavirus continues to take a toll on headcounts at the world’s largest hotel companies. Hilton will lay off 2,100 corporate roles — or about 22 percent of its corporate workforce — around the world, the company announced this week. The company also said it would extend previously announced furloughs, reduced hours, and pay cuts by 90 days. “Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill,” Hilton CEO Christopher Nassetta said in a statement. “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.”

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