Marriott to Furlough Thousands of Corporate Jobs - The Wall Street Journal

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

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Craig Karmin

Craig Karmin
The Wall Street Journal
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March 21, 2020 7:50 pm ET

Marriott International Inc. 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 4,000 corporate employees at the company’s Bethesda, Md., headquarters. Marriott is also furloughing about two-thirds of its corporate staff abroad, though the spokeswoman said she couldn’t immediately provide the number of Marriott corporate overseas jobs.

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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 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.

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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% 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.

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% cut in salary.

As the world’s largest hotel company with nearly 1.4 million rooms world-wide, 30 brands and about 7,300 properties, Marriott has been slammed hard by the collapse in global travel as companies halt business travel, conference organizers call off events and vacation plans are put on hold.

Mr. Sorenson and other hospitality and travel executives met with President Trump in Washington on Tuesday, when they asked for $250 billion in financial aid for the beleaguered industries.

Write to Craig Karmin at craig.karmin@wsj.com

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