Get All Access for $5/mo

Joining Other Top Executives, Marriott CEO Addresses Coronavirus Concerns Arne Sorenson, who has led the company since 2012, said that in most of the company's markets, the business was running 75 per cent below normal levels.

By Debroop Roy

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Marriott International Twitter

Adding to what has already become a tumultuous ride for businesses across the world, the chief executive officer of hospitality company Marriott International said the coronavirus outbreak has been more severe for the hotel chain than the Great Depression and World War 2.

In an emotional video message to the company's employees, CEO Arne Sorenson said the current financial situation was worse than the worst ever quarter for the company, which saw about a 25 percent fall in revenue. "In terms of our business, COVID-19 is like nothing we've ever seen before," he said.

Sorenson, who has led the company since 2012, said that in most of the company's markets, the business was running 75 per cent below normal levels.

Apart from giving leave of absence to tens of thousands of employees, suspending all non-essential travel and a hiring freeze, Sorenson said he will not receive any salary for the remainder of the year, same as executive chairman Bill Marriott Jr. while the executive team will take a 50 per cent pay cut.


Fear Spreads Across

This comes only a day after India's largest airline IndiGo said it would implement salary reductions of up to 25 per cent across verticals owing to the pandemic that has claimed more than 9,000 lives globally. Across the globe, news reports suggest pilots employed with British Airways will see a 50 per cent cut to their basic salary for April and May.

Several top executives in the airline industry have announced pay cuts for themselves as well as other top executives as lockdowns and suspension of visas has resulted in air travel coming to a virtual halt to and from affected countries.

According to a recent assessment by the International Labour Organization (ILO), an United Nations body, the economic and labour crisis due to the pandemic could increase global unemployment by nearly 25 million.

"However, if we see an internationally coordinated policy response, as happened in the global financial crisis of 2008/9, then the impact on global unemployment could be significantly lower," the ILO said.

Debroop Roy

Former Correspondent

Covering the start-up ecosystem in and around Bangalore. Formerly an energy reporter at Reuters. A film, cricket buff who also writes fiction on weekends.
Starting a Business

He Started a Business That Surpassed $100 Million in Under 3 Years: 'Consistent Revenue Right Out of the Gate'

Ryan Close, founder and CEO of Bartesian, had run a few small businesses on the side — but none of them excited him as much as the idea for a home cocktail machine.

Marketing

4 Neuromarketing Hacks to Reach More People and Maximize Results

You don't need to be a neuroscientist or have a big budget to start upping your conversions immediately.

News and Trends

Tech Burner's Anarc Smartwatch Achieves INR 3 Cr Sales with USD 1 Mn Investment

Anarc features a patented octagonal design by Thought Over Design and Seymourpowell, with a medical-grade stainless steel body. It includes advanced technology like a Hisilicon chipset, AMOLED display, and seven-day battery life.

Growing a Business

Stop the Errors: Set a Review Process That Works

Mistakes make you look unprofessional and hurt your growth. Fix them today.

News and Trends

Hyundai Motors India to Invest INR 38 Crore in Renewable Energy

The collaboration is set to establish a solar power plant with a 75 MW capacity and a wind power facility of 42.9 MW in Tamil Nadu, bringing the total renewable energy capacity to 118 MW.

Franchise

The Top 10 Coffee Franchises in 2024

From a classic cup of joe to a creamy latte, grab your favorite mug and get ready to brew up success with the best coffee franchises.