Wyndham Hotels & Resorts (WH) - Get Report on Monday said it was cutting jobs and implementing other cost-cutting measures related to the economic fallout caused by the coronavirus pandemic and its impact on travel and tourism, including having its CEO forgo his 2020 base salary.
In a Securities and Exchange Commission filing, Wyndham said it will cut jobs, reduce salaries and also reduce work hours as the company grapples with the pandemic, which has decimated the travel and tourism industry by putting a halt to all business and leisure travel.
The company will eliminate a total of 270 positions, according to the 8-K filing. Approximately half of its 2,500 corporate staff members will be impacted. CEO Geoffrey Ballotti, meanwhile, will forgo 100% of his base compensation for 2020, starting April 1, and the board of directors will forgo the cash-based portion of their retainers.
The Parsippany, N.J.-based company expects to record a charge of $15 million to $18 million from the measures, which are expected to be mostly completed in the second quarter, and result in annualized savings of about $30 million, according to the filing.
Hotel chains are struggling amid the unprecedented shutdown that has economically paralyzed wide swaths of the developed world, with no immediate end in sight.
Wyndham competitor Hilton (HLT) - Get Report last week said it was suspending its dividend, furloughing part of its corporate workforce, suspending stock buybacks and halting all non-essential expenses in a bid to stay solvent through the unprecedented full-stop in the travel industry.
Shares of Wyndham were down 5.7% at $23.50 in trading on Monday. The company's shares have lost close to half their value in the past three months.