Marriott to grant leave of absence to thousands of workers

Marriott International plans to furlough thousands of corporate employees at its headquarters and other cities around the world.

Corporate furloughs follow Marriott’s decision to begin furloughing what the company expects to be tens of thousands of hotel staff. Picture: Zuma Press

Marriott International plans to furlough thousands of corporate employees at its headquarters and other cities around the world, the company confirmed to The Wall Street Journal, continuing a massive shrinking of payroll this week.

A Marriott spokeswoman said that the company was furloughing about two-thirds of its 4000 corporate employees at the company’s headquarters in Bethesda, Maryland.

Marriott is also furloughing about two-thirds of its corporate staff abroad, though the spokeswoman said she couldn’t immediately provide the exact number of overseas jobs.

The moves come in response to the plunge in global travel as the coronavirus continues to spread.

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 US corporate employees will receive 20 per cent of their salary, which can be put towards health care and other costs, the spokeswoman said.

Corporate employees who stay on are subject to 20 per cent pay cuts and reduced working weeks, the spokeswoman said.

Those corporate furloughs follow Marriott’s decision to begin furloughing what the company expects to be tens of thousands of hotel staff — from managers to housekeepers — as it ramps up hotel closings across the globe.

Marriott chief executive Arne Sorenson said in a video message to employees on Thursday that Marriott business is now running about 75 per cent below normal levels, making this period more devastating than any other in the history of the nearly century-old hotel company.

Mr Sorenson said the financial impact was worse than the post-9/11 period and 2008-09 financial crisis combined.

Mr Sorenson and board chairman Bill Marriott have stopped receiving a salary during this period, the CEO said in the video, adding that his executive team will take a 50 per cent pay cut.

Wall Street Journal