Hilton Hotels Corporation has said it is planning over 1,000 job cuts globally as it embarks on a US$250 million cost-cutting programme. HHC, controlled by Blackstone Group, announced plans to close its corporate headquarters in Beverly Hills, California, and move operations to Virginia. Meanwhile staff at its Watford international centre in the UK, as well as Singapore and Dubai, are bracing themselves for sweeping job cuts.
The corporation has 3,200 hotels in 77 countries, employing some 135,000 staff. According to The Times, it is cutting jobs at the 15 per cent of hotels it owns or manages, whilst its franchisees are likely to follow.Insiders said they expect at least half the employees in Watford to lose their jobs as the old Hilton International headquarters becomes a European centre.
Christopher Nassetta, president and chief executive of HHC, is spearheading the cost-cutting programme. He has engaged McKinsey, the management consultant, to conduct a review to cut $200 million to $250 million of costs.
Blackstone’s US$26 billion buyout of HHC came in October 2007, at the peak of the market. However the subsequent financial crisis has all but wiped $5.5 billion off the equity invested in the deal.