Large companies are reducing their headcounts as a result of the pandemic. Here are some of the largest companies that announced workplace reductions this past week.
“If it were not for Covid-19 and its devastating effects, we would not be filing for Chapter 11,” he said. “We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future.”
The company permanently closed more than 100 gyms across the United States, resulting in an indeterminate number of layoffs. The company is “unable to provide details on the number of employees impacted by the difficult decisions that were made during this time,” it said in a statement to CNN Business.
Likewise, the owner of New York Sports Club and a number of other gyms located predominantly on the East Coast revealed that it laid off much of its 7,000 person workforce because of temporary gym closures.
The Communications Workers of America says the job cuts will come to 3,400 technicians and clerical staff, as well as 1,300 additional workers at AT&T Mobility and Cricket Wireless stores.
The company had 244,000 employees as of March 31, so a 4,700 headcount reduction would represent a 2% decrease in its global staff.
“Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill,” CEO Christopher Nassetta said in a press release, adding that he was “devastated” by the decision.
Thursday’s announcement is a continuation of layoffs it halted in March to reduce uncertainty for employees and protect its capacity to serve customers amidst the coronavirus pandemic.
The Covid-19 crisis has crippled the bank, which is embarking on one of the deepest restructuring programs in its history. HSBC’s profit plunged 48% to $3.2 billion in the first quarter, compared to a year earlier, and it set aside billions of dollars to cover credit losses arising from the pandemic.
–CNN Business’ Chris Isidore and Hanna Ziady contributed to this report.