Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The management of Hungarian hotel chain Hunguest Hotels decided to lay off up to 850 employees, that is, about half of chain's workforce. The restructuring programme begins in May 2020. The layoff is directly connected to a large-scale renovation and upgrade programme that affects 14 hotels of the hotel chain, out of the total of 26. The renovation may take two years. After the renovation, the hotels will get a higher star rating and will subsequently rebuild their workforce. The hotels not involved in the renovation plan will open as soon as state authorities dismiss the current restrictions.
Originally, the renovations were planned to start at the end of 2020, and the hotels were planned to remain partially open during the renovation process. But tourist turnover collapsed in March due to the COVID-19 epidemic, and the operation of the hotels was suspended. Therefore, the management decided that the renovations would begin earlier than originally planned and that they would be implemented amid a complete shutdown. This means that the magnitude and the timing of the dismissals are heavily influenced by the coronavirus pandemic.
The layoff process will be implemented with the involvement of the works council and the trade union, in accordance with the legislation in force. Also, the affected employees will be offered job-search advice, life coaching, and retraining support.
Eurofound (2020), Hunguest Hotels, Internal restructuring in Hungary, factsheet number 100572, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/100572.