EMCC European Monitoring Centre on Change

Scandic

Company/Organisation:
Scandic

Geographic Location

Country: Sweden

Company

Sector: Hotel / restaurants
Accomodation and food service activities
55.1 - Hotels and similar accommodation
Group: Scandic Hotels Group

Employment Effects

Announcement Date: 12-03-2020
Planned Job Reductions min: 2000
Type of Restructuring: Internal restructuring

Additional Information

Due to the outbreak of coronavirus, the biggest hotel-operator of the Nordic countries, Scandic, announced its plans to dismiss up to 2,000 employees in Sweden. Travel restrictions and cancelled events have had a significant impact on the booking rates of the company and the economic result of the month of March is much weaker than expected. In order to adapt to decreased demand for hotel services, the company plans also to cut the number of personnel with fixed term contracts and to make cuts to the salary of the executive board. The Hotel and Restaurant Workers Union estimates that 15,000 people working for the Swedish hotel and restaurant sector risk losing their jobs due to the corona outbreak.

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