Wyndham Hotels Plans to Cut 270 Jobs to Counter Coronavirus Effects
Wyndham Hotels & Resorts (WH) said it needs to cut 270 jobs and plans to implement cost-cutting measures to cope with the negative effects of the global coronavirus pandemic.
The hotel operator said the cost-cutting steps are expected to lead to about $30 million in annual savings and will affect half of its 2,500 employees in the form of reduced salaries and reduced work hours. The measures will be implemented in the second quarter of 2020, Wyndham said in a SEC filing.
In addition, Chief Executive Geoffrey Ballotti will forgo 100% of his base compensation for 2020, starting April 1, and the board of directors will forgo the cash-based portion of their retainers.
Wall Street analysts have a bullish outlook on the stock. TipRanks’ database shows Wyndham’s Strong Buy consensus rating comes from a unanimous 5 Buy ratings given over the past three months. Shares could soar about 79% in the next twelve months based on the $57 average price target. (See Wyndham stock analysis on TipRanks)
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