The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Hotel / Restaurants Accommodation And Food Service Activities Accommodation 55.10 - Hotels and similar accommodation
1,000 jobs Number of planned job losses
Announcement Date
4 August 2020
Employment effect (start)
1 September 2020
Foreseen end date
31 December 2022
Description
The Accor group is going to launch a worldwide cost-cutting plan that will result in the loss of 1,000 jobs out of a total of 18,000 employees working at its headquarters.
The hotel group is affected by the health crisis linked to the COVID-19 and by the containment measures and border closures that accompanied it.
From January to June, the group's turnover amounted to €917 million, which represents a drop of 52.4% compared to the first half of 2019. The group's net result is a loss of $1.52 billion, compared with €141 million a year earlier. Revenue per available room (RevPAR), a key profitability indicator for the sector, fell by 59.3% over the same period (90.6% in Europe in the second half).
The outbreak of the epidemic led the European leader in the hotel industry to announce cost-saving measures, setting a target of €200 million against its cost base of €1.2 billion in 2019. Two thirds of these savings should be achieved by the end of 2021 and 100% by the end of 2022.
To achieve this, Accor plans to 'simplify and align operational structures across the different regions' and 'automate tasks based on repeatable processes'. The group thus wishes to simplify its hierarchical line. The company stated that specific measures at national level will be specified in the next future after consultation with social partners.
Eurofound (2020), Accor, Internal restructuring in World, factsheet number 101434, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/101434.
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