Hyatt cuts 30% of care center staff in business restructuring
WASHINGTON D.C., UNITED STATES — Hyatt Hotels has slashed 30% of its Americas Global Care Center workforce, citing shifting guest needs and cost-saving measures.
The layoffs, described as “blindsiding” by affected employees, follow similar restructuring moves by competitors like Marriott as the hotel industry adjusts to post-pandemic operational changes.
Workforce reduction reflects industry-wide cost-cutting trends
While the company did not disclose exact figures, an anonymous employee revealed that around 70 workers were laid off in a single meeting, with severance packages and 60 days’ pay offered.
The cuts align with Hyatt’s broader reorganization, which included executive leadership changes earlier this year.
The action reflects that of rival Marriott International, which terminated 800 corporate staff members in November. According to a Hyatt representative, the move was based on changes in customer queries and demands rather than low performance.
Despite this workforce reduction, the company continues to operate its main hubs in Marion, Illinois, and Omaha, Nebraska, despite layoffs. Additionally, My Hyatt Concierge services, which are customized to member loyalty, remain unaffected.
Layoffs spark employee backlash amid industry uncertainty
The firm justified the retrenchments as being necessary for financial efficiency, but the lack of warning has contributed to resentment among employees.
The contrasting idea that Hyatt promised the decisions were made with a certain respect demonstrates a clash that exists in corporate downsizing.
Still in the hospitality industry, the business has spent more time readjusting itself after the pandemic and has seen giants in the industry, such as Marriott and now Hyatt, slim down their operations.
Although Hyatt asserts that its high-touch loyalty services will be maintained, the reduction in general guest support staff, which provides support to non-loyalty customers, raises doubts about the quality of service it offers to such customers.
Hospitality industry post-pandemic challenges
This significant workforce reduction at Hyatt reflects the fact that the hospitality sector is still struggling to achieve a balance between cost retrenchment at pandemic levels and customer satisfaction, given ever-changing customer expectations.
This restructuring could signal an opportunity for Hyatt and peers to outsource non-loyalty guest services, such as general inquiries and support services, to specialized BPO providers, maintaining cost savings while preserving core concierge services in-house.
However, outsourcing risks dilute brand consistency, so rigorous vendor training is required to align with Hyatt’s reputation.
