Major American hotel company lays off hundreds of American employees and assigns $400 monthly positions to workers from El Salvador
Revised Article:
Hyatt Hotels slashes US workforce, outsources call center jobs to El Salvador
In a move aimed at cutting costs and embracing technology, Hyatt Hotels is reportedly axing US jobs from its customer service department. The hospitality giant's workforce reduction includes a significant change in its call center operations, with jobs being offshored to El Salvador.
This shift comes amidst a wave of layoffs from major American corporations as they seek to save money and implement new AI technology. Hyatt has reduced staffing levels across guest services and support roles that handled customer service inquiries, such as reservations, loyalty program assistance, and general guest support, by 30 percent in the US.
Although Hyatt has not officially confirmed the number of staff affected, travel expert Gary Leff's blog, "View From The Wing," suggests that approximately 300 US-based employees lost their jobs. The blog also claims that operations are being shifted, in part, to El Salvador, where outsourced agents reportedly earn as little as $400 a month.
Hyatt has declined to comment on the specifics but former employees have shared their layoff experiences on social media platforms such as Reddit, TikTok, and Leff's blog. On Reddit, a laid-off employee claimed that the remaining US call team had been terminated, while another reported being laid off during a Zoom call. A third shared that they recently attended a company-wide summit and received assurances about job security only to be let go.
Former Hyatt employees have also taken to TikTok to share their layoff experiences. One former employee posted a video of themselves being laid off on June 18, including a recording of a mass layoff video call. In the video, a voice can be heard stating, "We have made the very difficult decision to reduce the number of guest services and support staff."
According to a former staffer who commented on View From The Wing, Hyatt provided 60 days of paid leave following the layoffs. Hyatt operates more than 1,300 hotels across 76 countries, making it the fifth-largest hotel chain in the US.
The company maintains that the changes reflect "the evolving nature of guest inquiries and shifting business needs." A spokesperson emphasized that care centers continue to operate in Marion, Illinois and Omaha, Nebraska. While some jobs have been offshored, it appears Hyatt is not abandoning its US presence entirely.
The restructuring process is part of a larger trend in which major companies are turning towards automation, self-service tools, and offshore labor to cut costs. Hyatt is not alone in this move; other companies, like MGM Resorts and Sonder, have also announced job cuts in response to advancements in AI technology.
This shift in employment trends marks a departure from previous mass layoffs that targeted unskilled manufacturing positions, with today's cuts affecting highly-educated, highly-compensated employees. As the hospitality and retail industries adapt to a post-pandemic landscape, this focus on leaner, more technologically-driven operations could lead to fewer opportunities for American workers.
Enrichment Data:
- Hyatt Hotels has reduced its US workforce by cutting 30 percent of its customer service team, primarily from its call centers in Marion, Illinois, and Omaha, Nebraska.
- The decision to offshore jobs to El Salvador has raised concerns about employee salaries and job security, with former staff suggesting that outsourced agents earn as little as $400 a month.
- This workforce reduction is part of an industry-wide trend towards cost-saving measures, including implementing AI technology and outsourcing call center jobs.
- The broader hospitality industry is struggling with labor shortages, largely due to increased deportations and dwindling worker pools.
- This shift in employment trends is different from previous job cuts, which primarily targeted low-skilled, low-wage manufacturing positions, and is instead impacting highly-educated and highly-compensated employees.
- Despite Hyatt Hotels' shift towards technology and accepting lower labor costs in El Salvador, concerns about employee salaries and job security persist as former staff suggest outsourced agents earn as little as $400 a month.
- The restructuring process in Hyatt Hotels, which includes offshoring of call center jobs, echoes a broader industry-wide trend of cost-saving measures involving AI technology and outsourcing, affecting highly-educated and highly-compensated employees.
