Hilton will lay off 2,100 corporate roles — or about 22 percent of its corporate workforce — around the world, the company announced this week. 

Coronavirus continues to take a toll on headcounts at the world’s largest hotel companies.

The company, which surpassed Marriott as the world’s most valuable hotel brand last year, is also extending previously announced furloughs, reduced hours and corporate pay cuts for up to an additional 90 days.

Hilton said that impacted employees will receive severance pay, outplacement support, access to online Hilton alumni resources, access to an expedited recruitment process when travel resumes, extended access to the Go Hilton Team Member travel program and extended Team Member Hilton Honors status.

The hospitality industry has been rocked by travel restrictions and diminished demand stemming from the coronavirus crisis, with Marriott, Hyatt and others taking similar actions to preserve their business.

“Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill,” said Hilton’s President and CEO Christopher Nassetta in a statement. “Hospitality will always be a business of people serving people, which is why I am devastated that to protect our business, we have been forced to take actions that directly impact our team members. Our company’s spirit has always been grounded in a culture that supports our team members and delivers hospitality for our guests. We will keep that spirit alive, and when the world begins to travel again, we will be ready to welcome them back.”

Hilton’s corporate layoffs come on the heels of strong May employment numbers, where leisure and hospitality jobs accounted for 1.2 million of the 2.5 million jobs added for the month. Hilton’s job cuts may seem out of step from the labor strength seen last month, but most analysts expect the travel industry has a long way to go before it is once again performing at 2019 levels.

There have been some signs of a slow-moving recovery as STR reported U.S. hotel occupancy reached 39.3 percent for the week ending June 6, up nearly three percent from the previous week (36.4 percent) and nearly double that of the week ending April 11 (22 percent).

Like the rest of the sector, Hilton has rolled out enhanced cleaning procedures designed to provide guests with added safety and peace of mind, recently introducing Hilton CleanStay.

Major hotel companies like Marriott, Hyatt, and Wyndham have all announced corporate layoffs and furloughs amid the coronavirus crisis but haven’t been as public with the percentage impact to their overall workforce.

Source: Destination Review