Marriott extends furloughs, predicts ‘position eliminations’

Marriott International has provided an update to the company’s global workforce on the continuing impact of COVID-19 on its business.

On Wednesday, Marriott informed its associates that the company will need to implement additional measures in light of the increasing likelihood that it will be some time before lodging demand and RevPAR levels recover. Specifically, the company informed above-property associates in the United States that furloughs and reduced work week schedules that began in April will be extended through October 2.

The company is also rolling out a voluntary transition program for on-property and above-property associates in the United States who may choose to leave the company to pursue other opportunities. Similar voluntary programs are being considered in other parts of the world.

Given the company’s expectation that prior levels of business will not return until beyond 2021, Marriott says it anticipates a significant number of above-property position eliminations later this year. The company also said it’s not able at this time to predict how many associates will be affected by these separations or any resulting charges or cost savings.