Marriott Starts to Lay Off Corporate Employees

Marriott International informed employees this week about a widespread restructuring that may result in hundreds of employees exiting the company, sources within the company told Skift.

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

The company, based in Bethesda, Maryland, filed a WARN (Work Adjustment and Retraining Notifications) notice with the state about the layoffs, a source said. The state had yet to post the notice online.

UPDATE: On Friday, Maryland posted the WARN notice, citing 833 layoffs by Marriott. The company had recently said it had about 5,000 workers associated with the HQ, which would imply a 16% workforce reduction. Other cuts are happening worldwide.

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

The hotel giant revealed on November 4 when reporting third-quarter results that there would be a large organizational overhaul.

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

“Earlier this year, we began a strategic review of all aspects of Marriott International’s business across geographies to enhance our enterprise-wide effectiveness and discussed this initiative on our Q3 earnings call,” the spokesperson said. “While always difficult, these job reductions at our corporate and continent offices will reshape the way we work and are expected to be largely in place in Q1 2025.”

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

Marriott Cuts

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

“This initiative is anticipated to result in roughly $100 million of charges, primarily in the fourth quarter of 2024,” said Leeny Oberg, chief financial officer, referring to “employee termination benefits.”

Affected employees will be eligible for severance packages (varying based on position and length of service) that include outplacement assistance, a source said.

New Openings to Come

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

Apparently unrelated to that, as of Thursday, the company had dozens of openings on its career pages in the U.S. and Europe. For instance, it was advertising for about 50 open positions at its corporate office in Bethesda.

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