Transcorp Hilton Hotel, Abuja, has said it is reducing 40 per cent of its workforce due to losses caused by the COVID-19 pandemic.
All executives of the hotel have also taken a pay cut.
Dupe Olusola, Managing Director of the organisation, said the move was to restructure its business strategy as well as diversify its portfolio to mitigate the impact of the Coronavirus on tourism in the country.
She said, “The impact of COVID-19 on the business is like nothing the company has ever witnessed. The hotel and hospitality industry in Nigeria has never faced a crisis that brought travel to a standstill. The slow pick up of international travel, restriction on large gatherings, the switch to virtual meetings and fear of the virus, has drastically reduced demand for our hotels and occupancy levels to its lowest of less than five per cent.
“Despite the losses incurred, we have fulfilled our obligations to staff. At the inception of the pandemic, we maintained a 100 per cent salary payment to our over 900 employees in March and April. We also activated various cost-saving initiatives such as renegotiations of service contracts and restructuring of our loans.
“We suspended further commitment to buy fixed assets and operating equipment as well as reducing our energy consumption and maintenance costs. Despite undertaking these, it has become apparent that more fundamental changes need to be made for the business to survive. To this end, our workforce headcount will be reduced by at least 40 per cent, and our reward system will be optimised.”
She added that those, who are impacted would be compensated adequately and a health insurance package to reduce their health burden costs, especially during the pandemic, amongst other payment settlements, will be activated.