Transcorp Hilton Hotel lays-off 40 percent of its workforce.

The management of Transcorp Hilton Hotel, Abuja, disclosed that it would be reducing 40 per cent of its staff because of the losses induced by the COVID-19 pandemic.  

The Managing Director of the organization, Dupe Olusola has said that the decision was aid in the recovery from the loss caused by coronavirus pandemic.

PHOTO: The Managing Director, Dupe Olushola

“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 explained.

Olusola also added that those that would be laid-off would be adequately compensated insurance packages and other financial settlements.

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