Recession. 1,000 Accor employees will go to the pavement as a result of the coronavirus pandemic

French hotel giant Accor (AC, listed on Euronext and LSE) announced on Tuesday a savings plan that will translate into the dismissal of 1,000 employees worldwide. This will save € 200 million annually by 2022 to deal with the effects of the coronavirus pandemic.

The Accor Group, which includes chains such as Raffles and Sofitel, Novotel, Mercure, Pullman, as well as the cheap Ibis chain, announced in a statement that compared to 2019 it will reduce costs by 17%. and will spend approximately EUR 300 million on the implementation of the savings plan.

The plan is to lay off 1,000 workers worldwide for a total of 18,000. employees in over 5,000 hotels in 111 countries, announced the deputy general director of the group, Jean-Jacques Morin, during a telephone press conference.

He explained that “it is very difficult to make savings in this sector so that it does not translate into employment. As he claimed, he is not yet able to state in which country the layoffs in Accor hotels will occur.

According to Accor’s results published on Tuesday, the sixth largest hotel group in the world posted a net loss of EUR 1.5 billion in the first half of this year. For the same period last year, it achieved a profit of 141 million euros.

Despite the difficulties related to the coronavirus pandemic and the inhibition of tourism, Accor has launched 81 percent. their hotels.

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