CHICAGO — As a result of COVID-19 significantly decreasing demand for hotel rooms and event space, Chicago-based Hyatt Corp. has suspended operations at many hotels and implemented temporary furloughs as well as pay and work reductions that will impact Hyatt corporate workers across the globe. The furloughs and reductions are in place from April 1 through May 31 and affect two-thirds of the company’s U.S. corporate employees, according to Bloomberg. The furloughs will enable Hyatt corporate staff to retain eligibility for healthcare and other benefits. Colleagues may also file for unemployment benefits during this period.
Hyatt is also in the process of setting up a global Hyatt Care Fund, which will be seeded by 100 percent of Hyatt leadership team’s salary reductions as an initial contribution. Both President and CEO Mark Hoplamazian and Chairman of the Board Tom Pritzker are forgoing 100 percent of their salaries and Hyatt’s senior leadership team is taking a salary cut of 50 percent through the end of May. The proceeds of the fund will be distributed to those workers with the most pressing financial needs due to loss of income.