earnings reports

French hotel group Accor to cut 1,000 jobs

Agence France-Presse, Agence France-Presse
French hotel group Accor to cut 1,000 jobs

(FILES) In this file photo taken on February 21, 2018 chairman and CEO of French hotel operator AccorHotels Sebastien Bazin gives a press conference to present the group's 2018 results at Accorhotels headquarters in Issy-les-Moulineaux, near Paris. - French hotel giant Accor announced on August 4, 2020 that it will launch a savings plan with the loss of 1,000 jobs worldwide, after reporting a significant loss in the first half of the year due to the health crisis caused by the COVID-19 (novel coronavirus) pandemic. (Photo by ERIC PIERMONT / AFP)

AFP

Accor, which runs high-end chains such as Raffles and Sofitel and budget brands like Ibis, says 1,000 of the group's 18,000 employees will lose their jobs

France’s Accor, the world’s 6th largest hotel chain, said on Tuesday, August 4, it was slashing 1,000 jobs worldwide in a major cost-cutting plan accelerated by the effects of the coronavirus pandemic.

The group, which runs high-end chains such as Raffles and Sofitel and budget brands like Ibis, plans to cut costs by 200 million euros by 2022.

The pandemic has led to the closure of several Accor hotels around the world and 1,000 of the group’s 18,000 employees will lose their jobs, financial chief Jean-Jacques Morin said.

“It is difficult to implement cost-saving measures in our industry without it having an effect on staff,” Morin said in a telephone interview.

“We will help them,” he said, of the 1,000 people to be laid off.

Accor posted half-year net losses of 1.5 billion euros ($1.7 billion) against profits of 141 million euros during the same period last year.

Turnover plunged to 917 million euros. 

“The bad half-year results reflect the extraordinary environment linked to the coronavirus crisis,” Morin said. 

“The shock that our industry is experiencing is both violent and unprecedented,” Accor chief executive officer Sebastien Bazin said. 

“The peak of the crisis is undoubtedly behind us, but the recovery will be gradual. Having taken these emergency steps, we must now finish the job from an asset-light model to a full asset-light company.” – Rappler.com

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