Shift Take

Now that Marriott International has doubled in size over a decade, it saw an opportunity to rethink its organization and restructure for efficiency.

Sean O’Neill

Marriott International informed employees this week of a large-scale restructuring that could see hundreds of employees leave the company, company sources told Skift.

The cuts are worldwide and affect “above-property” positions, which refer to people at the corporate level rather than those who work in hotels.

Some employees received early retirement in the third quarter. Other employees whose positions are being eliminated will be able to apply for other Marriott jobs only for internal candidates, three sources said.

The company, based in Bethesda, Maryland, has filed a WARN (work adjustment and retraining notices) notice with the state about the layoffs, a source said. The state still had to post your ad online. Skift will update this story when it does.

The hotel giant revealed on November 4 when reporting third-quarter results that a broad organizational overhaul would take place.

A company spokesman declined to say how many people were laid off or to answer questions about Skift’s reporting. But they did offer a statement:

“Earlier this year, we began a strategic review of all aspects of Marriott International’s businesses across geographies to improve the efficiency of our company, and we discussed this initiative on our Q3 earnings call,” the spokesperson said . “While always difficult, these job cuts at our corporate and mainland offices will reshape the way we work and are expected to be largely implemented in Q1 2025.”

In the last few days, an online Reddit forum with Marriott employees was rife with speculation about cuts while a handful of employees took to TikTok to discuss the layoffs.

Marriott Cuts

Management said on November 4 that it aims $80 to $90 million per year in cost savings as part of a restructuring initiative involving one-time costs focused on achieving enterprise-wide efficiencies to support future growth.

“This initiative is anticipated to result in an expense of approximately $100 million, primarily in the fourth quarter of 2024,” Chief Financial Officer Leeny Oberg said, referring to “employee termination benefits.” .

Affected employees will be eligible for severance packages (which vary by position and seniority) that include placement assistance, a source said.

New openings to come

If Marriott eliminates a job, any affected associates, as the company calls its employees, can apply for new positions that will be open to internal candidates first, a source said.

Seemingly unrelated, as of Thursday, the company had dozens of openings on its career pages in the US and Europe. For example, it was advertising for approximately 50 open positions at its corporate office in Bethesda.

Performance of the accommodation sector stock market index since the beginning of the year

What am I looking at? The performance of hotels and stocks in the short-term rental sector within ST200. The index includes publicly traded companies in global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative and timeshare accommodations.

Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and the performance of the short-term rental financial sector.

Read the full methodology behind the Skift Travel 200.