As rules and regulations continue to be implemented, the hospitality industry continues to struggle. Travel bans created at the start of the pandemic kicked off the process, and the continued spread of the stubborn disease has not helped. Many companies have been faced with uncertainty as travelers have limited their urge to purchase airline tickets or book a hotel. With uncertainties still rising, companies have continued to furlough or layoff employees due to the pandemic.
American Airlines Warns Employees of up to 20,000 Job Cuts
American Airlines recently announced to their employees that the company will furlough approximately 20,000 employees beginning October 1st. As Doug Parker, chief executive, and Robert Isom, president, of American Airlines shared: “We know American will be smaller going forward and we must right - size all aspects of our airline to adjust to that new reality”. The company will furlough flight attendants, maintenance workers, passengers service employees, and pilots. American has shared they will offer the option to some employees to take leave for up to a two year period, which will allow workers to receive some of their salary, with health and travel benefits still available.
United Airlines Layoff up 36,000 Employees October Coronavirus Fallout
United Airlines will also begin laying off up to 36,000 employees around October 1st due to COVID - 19 and the effect it has had on the travel industry. Employees such as flight attendants, airport customer service and gate agents will be most affected, as these roles will represent approximately 26,000 of the 36,000 layoffs. United shared in a statement: “After months of aggressive cost - cutting and proactive capital raising, today we updated employees about a topic we’ve always dreaded and the action that was always a last resort in the context of this COVID - 19 pandemic: involuntary furloughs.” The company has referred to the furloughs as “involuntary” so when travel demands begin to rise, most employees that have been affected will be eligible to be recalled through their contracts.
Choice Hotels lays off 15% of employees
Choice Hotels has recently laid off all previously furloughed staff members as of July 1st. Although Choice Hotels has not released the exact number of employees who have been laid off, as reported in Yahoo! News, 15% of Choice Hotels employees were placed on a 60 day furlough as of April. Last month, CEO of Choice Hotels Patrick Pacious indicated that permanent layoffs could be possible as time progressed. The hotel industry has been faced with challenges as the pandemic has implemented traveling restrictions.
Rosen Hotels & Resorts
Rosen Hotels to begin layoffs July 31st
Rosen Hotels & Resorts have announced that there will be layoffs beginning July 31st, with the layoffs affecting various departments. President and COO, Harris Rosen, shared in a release regarding the layoffs: “Never in the 46 - year history of my company would I have envisioned such a drastic decision.” Throughout the pandemic, the company was hopeful that once June had come, business would return back to normal. Seeing the effect that the pandemic has had and exploring various alternatives, Rosen Hotels & Resorts was faced with a tough decision. In total 1,107 workers will be laid off, and another 841 will be furloughed
Saratoga Casino & Hotel
In a bit of good news, hiring
As of mid - March, Saratoga Casino and Hotel furloughed hundreds of employees, which has then shifted to 401 layoffs. However, there is some good news, as the hotel has now reopened which has allowed some employees to come back to work. While the hotel portion is now reopened, the casino is still closed until regulations are lifted. In the meantime, Saratoga Casino and Hotel has a full plan ready for the casino as every other machine will be turned off to practice social distancing and plexiglass shields will be placed at different locations.
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