Marriott Layoffs 2017: 100+ Job Cuts in Stamford after Starwood Hotels & Resort Acquisition

Marriott Layoffs
iStock/tupungato

Marriott International Inc (NASDAQ:MAR) continues to trim its headcount one year after acquiring Stamford, Connecticut-based Starwood Hotels and Resorts Worldwide. Marriott said it plans to lay off 107 Stamford employees in December. The hospitality company said the job cuts are part of the company’s reorganization plans and will continue into 2018. The Marriott announcement is part of a larger trend in hotel industry layoffs.

Marriott to Lay Off 107 Stamford Employees in December 2017

Marriott International recently announced plans to eliminate 107 jobs at its South End offices in Stamford, Connecticut. Most of the job cuts will affect those in vice president, director, manager, specialist, and corporate positions.

“The 107 jobs that are impacted are part of our continued integration post-merger with Starwood,” a spokesperson with Marriott said. “These jobs are related to the integration of various systems and platforms and the resulting reorganization of teams — an effort that has been underway since we closed the transaction in September 2016 and will continue into 2018.”

Marriott has announced around 330 layoffs in Stamford since it completed the acquisition of Stamford-based Starwood Hotels and Resorts Worldwide for $13 .0 billion. The deal created the world’s largest hotel company.

Following the acquisition, Marriott operates or franchises more than 5,700 properties and 1.1-million rooms in over 110 countries. With the completion of this acquisition, Marriott’s distribution more than doubled in Asia, the Middle East, and Africa combined.

At the time, Marriott noted that it believed it could achieve $250.0 million in annual “corporate cost synergies” and “sharing best practices” and to manage its “balance sheet prudently after the merger.” This, of course, translates into layoffs.

Marriott Layoffs Since Starwood Acquisition

Marriott initiated layoffs within a few months of acquiring Starwood Hotels and Resorts Worldwide. In late 2016, Marriott filed three Worker Adjustment and Retraining Notification (WARN) reports with the Connecticut Department of Labor, announcing a total of 169 permanent layoffs. The terminations stated in December 2016 and ended in February 2017.

Marriott started 2017 by announcing another 50 layoffs in Stamford. These layoffs constituted almost 10% of Marriott’s roughly 550-person Stamford team. The March 2017 layoffs affected mostly vice president, director, and specialist positions.

Jack Condlin, president and CEO of the Stamford Chamber of Commerce noted, “We’re happy to have them, but we hate to see the reduction in their operations here in Stamford.”

At the time of the merger, there were about 700 employees in Stamford. With the recently announced layoffs, Marriott has eliminated nearly 50% of the workforce there.

Marriott International has not limited its post-Starwood acquisition layoffs to Stamford, Connecticut. In March 2017, Marriott eliminated 56 positions at its Scottsdale, Arizona offices on Scottsdale Road. The company said the layoffs were a result of its merger with Starwood Hotels.

As Marriott continues to digest its acquisition of Starwood Hotels, it is widely expected that the hospitality company will continue to announce additional layoffs in 2018. 

 

Sources

Listing of Warn Notices – 2017,” Connecticut Department of Labor, last accessed November 13, 2017.

Marriott to lay off more than 100 Stamford employees,” Stamford Advocate, September 26, 2017.

Marriott International Completes Acquisition of Starwood Hotels & Resorts Worldwide, Creating World’s Largest and Best Hotel Company While Providing Unparalleled Guest Experience,” Marriott International Inc, September 23, 2016.

Listing of Warn Notices – 2016,” Connecticut Department of Labor, last accessed November 13, 2017.

WARN Listing Properties,” Arizona Work, last accessed November 13, 2017.

Categories: Job Cuts, NewsArticle
Tags:

Advertisement