Type
Internal restructuring
Country
Sweden
Region
Location of affected unit(s)
Sector
Hotel / Restaurants
Accommodation And Food Service Activities
Accommodation
55.1 - Hotels and similar accommodation

2,000 jobs
Number of planned job losses
Job loss
Announcement Date
12 March 2020
Employment effect (start)
Foreseen end date

Description

Due to the outbreak of coronavirus, the biggest hotel-operator of the Nordic countries, Scandic, announced its plans to dismiss up to 2,000 employees in Sweden. Travel restrictions and cancelled events have had a significant impact on the booking rates of the company and the economic result of the month of March is much weaker than expected. In order to adapt to decreased demand for hotel services, the company plans also to cut the number of personnel with fixed term contracts and to make cuts to the salary of the executive board. The Hotel and Restaurant Workers Union estimates that 15,000 people working for the Swedish hotel and restaurant sector risk losing their jobs due to the corona outbreak.


Sources

Citation

Eurofound (2020), Scandic, Internal restructuring in Sweden, factsheet number 100028, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/100028.