- The spread of the coronavirus is plunging the global economy into recession. Coronavirus related unemployment claims are already rising and expected to explode in the coming weeks.
- According to Markets Insider, the number of jobless claims for the week ending March 14 totaled 281,000, exceeding economist estimates for 220,000. In a week's time, Goldman Sachs anticipates the number of jobless claims could explode to a record 2.25 million.
- The travel and hospitality industries are already being hit the hardest — three airlines including Air Canada have already announced a reduction in workforce and Marriott, the world's largest hotel company, is starting to furlough thousands.
- Here's a roundup of the major companies who have announced downsizing their workforce due to coronavirus thus far.
- Visit Business Insider's homepage for more stories.
This is a developing story, check back for updates.
Scandinavian Airlines (SAS) announced that it would temporarily lay off 10,000 employees — 90% of its staff — on March 15. SAS also halted the majority of its flights and is operating with limited service.
Source: Forbes
Norwegian Airlines announced the temporary layoff of 90% of its workforce on March 16, amounting to 7,300 employees. The airline also canceled 85% of its flights.
Source: Reuters
Marriott International, the world's largest hotel company, said it has started to furlough what could amount to tens of thousands of employees on March 17. Furloughs, as opposed to layoffs, occur when employees are required to take an unpaid leave of absence. Arne Sorenson, the president and CEO, announced that his own salary will be suspended for the rest of the year and senior executives' salaries will be reduced by 50%.
Source: Wall Street Journal, Business Insider,Business Insider
Pebblebrook Hotel Trust, which owns over 50 hotels in the US including the W in Los Angeles, laid off 50% of its 8,000 employees on March 17. CEO Jon Bortz also told the Los Angeles Times that the company may need to lay off an additional 2,000 employees by the end of the month.
Source: Los Angeles Times
Famous restauranteur Danny Meyer's Union Square Hospitality Group, which owns beloved NYC staples like Gramercy Tavern, laid off 2,000 employees, or 80% of its workforce, on March 18.
Source: Business Insider
New York's Metropolitan Opera is the largest performing arts organization in the US by budget. On March 19, the Met laid off all of its union employees for the duration of the coronavirus outbreak. The Met also announced the cancellation of all performances through the end of the 2019-2020 season, which was set to end May 9.
Source: NPR
Cirque du Soleil announced it is laying off 95% of its 4,679 person staff on March 19, a week after canceling all its upcoming performances. The circus producer kept 259 staffers to plan and sell tickets for future tours.
Source: Cirque du Soleil,Forbes
Air Canada announced it is set to lay off more than 5,100, or 50%, of its flight crew on March 19. Renee Smith-Valade, the airline's vice president, called the decision "difficult but necessary" in a statement.
Source: CBC
According to the Washington Post, at least 200 workers across President Trump's hotels in Washington DC, New York City, and Las Vegas were laid off as of March 20. Other Trump properties, like Palm Beach's Mar-a-Lago, have temporarily closed.
Source: Washington Post, Business Insider
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