Many companies to furlough more than a thousand employees amid coronavirus fallout
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Many companies to furlough more than a thousand employees amid coronavirus fallout. Job loss is there in the coming days with coronavirus epidemic.
Coronavirus spread rapidly around the world since it was first revealed in China less than three months ago. It has dealt an unparalleled shock to the global economy.
As governments are attempting to stabilize their economies, even the top-level companies facing a tough time. They navigate through many altered landscapes. It let millions of people face job losses and interrupted good and services. Following are the announcements from two businesses encountering fallouts due to the dangerous virus outbreak.
Marriott International about to furlough thousands of employees
The largest hotel company in the world, Marriott International Inc., announced Sunday it would furlough their corporate employees soon. More than thousands of employees are working in their headquarters in the U.S and across the globe. They will get furloughed as the company is forced to scale back due to the coronavirus pandemic. This decision, first reported by The Wall Street Journal Sunday, adds to massive recent payroll reductions that began last week.
Marriot is the world’s largest hotel company. Like many of its peers, it is trying to cope up with a plunge in demand due to the coronavirus.
On Sunday, Marriott said that they are furloughing about two-thirds of its 4,000 corporate staffs at its headquarters in Bethesda, Maryland. It is also furloughing around two-thirds of its corporate workers abroad. Marriot has about 174,000 employees globally. The furloughs are assumed to start in April and last up to 90 days.
Marriott added that it hoped to bring back their staff when the demand for hotel and travel accommodations has resumed, and the threat of coronavirus has subsided.
The firm stated Donald Trump, the president of the united states last week that it has begun reducing employees’ hours and starting to furlough what could eventually become tens of thousands of workers at its hotels. It is a big crisis for such a big company where more than lakh of people wear a Marriott name badge globally.
Furloughed workers in the U.S. will get 20 per cent of their salary while those who are still currently employed are facing heavy pay cuts and reduced work hours, the company informed President Trump last week.
U.S. hotel businesses have been seeking $150 billion in direct aid from the government for their employees.
Marriott’s chains and franchisees have owned 7,300 properties around the globe. It covers 30 brands over the different parts of the world, including W Hotels, Courtyard and Sheraton under its 92-year-old umbrella.
President and CEO of Marriott Arne Sorenson also enumerated several other corporate cuts in a video posted to the company’s Twitter on Wednesday that foreshadowed the furloughs.
Sorenson declared that the pandemic had a “more rigorous and sudden financial impact on our business than Since COVID-19 started spreading more swiftly from Wuhan, China earlier this year. Sorenson said that business in China has declined 90 per cent and was ranking in “75 per cent below normal levels” in other parts of the world. It forced hundreds of hotel closures across the globe.
As a result, Sorenson, who has been healing from pancreatic cancer, and Executive Chairman Bill Marriott will not receive salaries for 2020. And his senior executive team is taking a 50 per cent pay cut, according to the company.
3,500 Halliburton staffs in Houston furloughed due to difficult oil market
Headquartered in HOUSTON, Texas (KTRK), Halliburton announced it is issuing a compulsory furlough to 3,500 staffs at its North Belt facility in Houston.
Beginning on March 23, employees on the mandatory leave of absence will work one-week off, one-week on for up to two months. Employees will get paid for the weeks that they are on, but will not get paid for the weeks they are off. The benefits and health insurance of the employees will remain in place.
This decision comes due to recent challenges in the oil market after the coronavirus outbreak.
Helps could soon be on the way, though.
On last Tuesday, the Trump administration said they are about to send checks to the public within the next two weeks. They want to help people through the financial distress of the coronavirus crisis.
Congress still has to approve the plan.
It is not exactly clear about how much money would be received, but Senator Mitt Romney has suggested $1,000.
