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Marriott to Lay Off Employees in Response to Coronavirus

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Marriott International, Inc. (MAR - Free Report) is planning to lay off hundreds of employees in Maryland in October as a response to the coronavirus pandemic induced crisis. Per USA TODAY, the company will lay off 673 employees from its headquarters starting Oct. 23.

The layoff will impact nearly 17% of its workforce at the Bethesda, MD, headquarters, where the company employs approximately 4,000 employees. In March, it furloughed tens of thousands of employees due to the ongoing crisis.

Given that the ongoing coronavirus pandemic continues to impact the global travel industry, hoteliers are focusing on cost saving measures to counter the crisis. Employees in the industry are facing pay cuts, layoffs, shortened working hours and furloughs.

Despite the virus triggering a catastrophe in terms of lives lost and financial impact, the company appears resilient enough to navigate through these uncertain times. We believe that it will continue to monitor the COVID-19 crisis and adjust its contingency plans in accordance to it.

Other major hoteliers like Wyndham Hotels & Resorts, Inc. (WH - Free Report) , Hyatt Hotels Corp. (H - Free Report) and Marriott Vacations Worldwide Corporation (VAC - Free Report) have also been impacted by the coronavirus outbreak.

Price Performance

Coming to price performance, shares of the company have gained 11.5% in the past three months, compared with the industry’s growth of 14.4%. Notably, slowdown in RevPar and social-distancing protocols imposed globally have been hurting the company. Moreover, earning estimates for 2020 have declined over the past 30 days, highlighting analysts’ concern over the stock’s growth potential.

Zacks Rank

Hilton currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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