On Saturday, Marriott International announced it will cut nearly half of its staff to 20 employees.
Marriott is also closing some of its hotels around the world and the resort chain is also downsizing its retail and service businesses, leaving the company facing massive financial pressure as its business expands rapidly.
Key points: Marriott’s cuts come amid a global recessionThe company is slashing 2,000 jobs worldwideMarriott will be shutting its flagship luxury hotels in the US and Europe and is downsizing services and retail outletsMarriott has been trying to cut costs in order to survive amid the global recessionMarriott CEO Greg Morin said he and other senior management were taking a hard look at the world economy, with a particular focus on how it affected travel, tourism and hospitality.
“Our team is working with industry leaders around the globe to explore what can be done to improve the quality of our guests experiences, and to improve our business performance,” Mr Morin wrote in a blog post.
In a statement, Marriot said it was making “essential decisions” to reduce its global workforce. “
These actions will not affect the number of guests who are visiting our hotels, but the impact will be felt across our global business.”
In a statement, Marriot said it was making “essential decisions” to reduce its global workforce.
“This has been an extremely challenging time for our business and we have taken significant steps to reduce costs,” it said.
The company has also said it will reduce the size of its international operations by 25 per cent and will “immediately cease all operations in some of our most important markets”.
The cuts come as a global downturn has hit the travel industry hard and has caused many to rethink their spending habits.
In October, Marriott announced that its retail business was being spun off from its international business, and it has also cut 1,000 roles at its hotels.
Its chief executive, Michael Prysby, has repeatedly blamed the downturn on “weak demand” for its brands, while other executives have said the company has been struggling to attract new guests.
Mr Morin has previously said he believed that the global economy was affecting the travel market.
But Mr Morind said on Saturday that he and his team were not taking a “soft” approach to the economy.
Rather, they were focusing on the needs of our customers, he said.
Marriott did not specify what it planned to do with the jobs it had already announced were being cut, but it said it planned “to ensure our operations remain competitive” and that “resources are being used to ensure our business continues to provide exceptional customer experiences”.
“We have identified some of the key trends that we will be tracking as we make these decisions,” Mr Prysbys blog post said.
“As a result, the business will be restructured in line with the changing economic environment.
This restructuring will not impact our global operations and we will continue to deliver the highest quality, highest value, customer experience.”
The changes are likely to hit guests in some places hard.
While the global travel industry has struggled to keep up with demand for its high-end hotels, some markets, such as New York, have seen more frequent holiday periods and more frequent trips, said Stephen Norenzayan, head of hotel studies at consultancy IHS Markit.
Some of the hotel chains have already reduced the number and quality of their services, and some of them have been forced to cut staff.
Australia’s iconic Marriot hotel in Sydney has already announced it is closing down, leaving it with fewer than 4,000 employees.
“It’s a big blow,” Mr Norezayan said.
“It’s the biggest job cut by a major hotel chain in Australia’s history.
It’s just going to hit them hard.
The global downturn is going to affect tourism in Australia.
There are going to be fewer holidays and longer stays, so there will be less opportunity for people to spend money and come back.”
However, Mr Nomezayan also said there would be more opportunities for Marriot’s other brands.
He said the Marriot family had become a global brand and that there would “still be opportunities for our brands to do business internationally”.
A spokeswoman for Marriott said the cuts were a result of “an ongoing review of our business, our business strategy, our operations and our business processes”.
Mr Prysbits statement said the business had been operating “in a strong position for the last 15 years”.
“We continue to invest in our businesses to deliver exceptional customer service and experience, while supporting our employees to continue to grow and innovate,” he said, adding that “we continue to operate our business as a profitable, global business”.
It is not the first time Marriot has been hit with a