Hyatt announces furloughs, pay cuts amid coronavirus outbreak

Hyatt Hotels announced Wednesday that it would furlough two-thirds of its corporate employees in the U.S. and temporarily cut pay for workers worldwide.

The hotel chain said the pay cuts will last from April 1 through May 31 but did not specify how much pay would be cut during that time.

Hyatt also said some hotels would be closed temporarily.

In its announcement, the company said furloughed employees can apply for unemployment benefits but were encouraged to use vacation time to get full compensation during the furloughed period.

Hyatt had about 55,000 employees in 2019, according to USA Today.

“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.

CEO Mark Hoplamazian and Chairman Tom Pritzker said they are forgoing their salaries during April and May, while the rest of Hyatt’s senior executives are taking 50 percent salary cuts through May.

“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.

Last week, the world’s largest hotel company, Marriott, began reducing hours and furloughing tens of thousands of employees due to the coronavirus outbreak.