Major hotel group may make 60% of staff redundant

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LGH, which manages some Crowne Plaza, Holiday Inn and Hallmark properties, has told about 1,500 staff that their jobs are at risk of redundancy because of the Covid-19 crisis.

The number of employees across the firm’s 55 hotels who could lose their jobs equates to 60% of the company’s 2,500 staff.

According to the BBC, LGH team members have said that the majority of staff at their hotels had been told they could be made redundant.

One employee, who like most colleagues has been on furlough, told the broadcaster that although the “official line” was that staff were in consultation, LGH had “made it very clear that there was no other option” and most roles would be axed.

Group people and development director at LGH Joanne Monk told the BBC no final decisions had been made about how many jobs would be cut, adding that LGH hotels would consider to be run by a skeleton staff.

Only a small number of staff out of those who were made redundant would be able to be redeployed within LGH hotels, she said, although some staff could be retained on casual contracts.

It is thought that higher management positions were at risk alongside operational roles such as bartender and reception desk.

Monk added that the winding down of the government’s job retention scheme from the beginning of August was a factor in the timing of the consultation, but the main reason the firm had warned staff about the risk of redundancy was that it did not anticipate demand to pick up within the next year.

Since 1 August, the BBC calculated, at least 7,500 jobs had been lost or were under threat.

Among the larger losses announced so far in August WH Smith said 1,500 jobs might have to go, Dixons Carphone said 800 jobs are to go, Pizza Express announced 1,100 staff would lose their jobs, Hays Travel said 878 employees may lose their jobs, and DW Sports said 1,700 jobs were at risk. The final week in July also saw substantial job losses.