Marriott International plans to lay off approximately 163 employees at Starwood Hotels & Resorts headquarters in Stamford, Connecticut, by the end of this year, according to a Monday report in The Hartford Courant.
Marriott told the state Department of Labor on Friday that there would be a mass layoff of “approximately 163 employees,” likely at the close of business on December 31.
The layoffs include some rank and file workers, but most will be managers, directors, vice presidents and senior vice presidents. These moves will help Marriott reach it stated goal of US$250 million in corporate overhead savings.
Starwood’s letter to the state said that the employees have been informed that Marriott will soon be posting jobs for which they may apply.
According to The Hartford Courant report, under the agreement with the state, if Marriott reduces employment at the former Starwood headquarters to fewer than 400 employees before 2019, it would have to pay back all of the state loans used to develop the Stamford headquarters from 2009 and 2014, and would have to pay US$1.7 million in taxes it avoided through credits. It also could have to pay 7.5% back on any tax credits it claims from now until the time it shrinks below 400 workers.