Bethesda-based Marriott International plans to lay off hundreds of workers in January.
Some 833 employees will be part of a mass layoff that takes effect Jan. 3, the hotel giant said in a notice filed with the Maryland Department of Labor. Marriott said it began a strategic review of all aspects of its global business earlier this year to boost its “effectiveness.”
“While always difficult, these job reductions at our corporate and continent offices will reshape the way we work,” a spokesperson said in an email Monday.
Job cuts are expected to be in place during the first three months of next year, Marriott said. Hotel staffing is not included in layoffs.
The number of people losing jobs could be less than reported to the state, Marriott said. Several hundred U.S. headquarters job openings are expected to be available internally and some of the laid-off employees are likely to be selected.
The company last laid off corporate workers in October 2020 amid the coronavirus pandemic, announcing 673 job cuts.
Anthony Capuano, Marriott’s president and CEO, described the hospitality chain’s business momentum as “excellent” in a Nov. 4 announcement of its most recent quarterly results. But he also announced upcoming cost-cutting.
“We have undertaken a comprehensive initiative to enhance our effectiveness and efficiency across the company,” with a goal of reaching $80 million to $90 million in annual cost reductions, Capuano said in the announcement.
That announcement did not include a notice of layoffs, which Marriott filed with the state on Nov. 14.
In its most recent quarter, Marriott said its revenue per available room increased 2.1% in the U.S. and Canada, compared with a year earlier, and rose by 5.4% in international markets.
Marriott International had considered moving its headquarters out of state, but in 2016 agreed to stay after the state and Montgomery County offered up tens of millions of dollars of incentives.
The company opened its new Bethesda headquarters, a $600 million building, in 2022.
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