Hyatt Regency
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Hundreds of US-based employees have been laid off by Hyatt Hotels in favour of artificial intelligence and lower-paid overseas workers, some earning as little as £291.70 ($400) per month.

Hyatt confirmed it had reduced staff at its Americas Global Care Centre by approximately 30% . A spokesperson told Hotel Dive the move was 'in response to the evolving nature of guest inquiries and shifting business needs'.

According to View From The Wing, the staff cuts affected around 300 employees.

They also reported that Hyatt's front-line call work will now be handled out of El Salvador and the Philippines. Workers in El Salvador are reportedly earning £291.70 ($400) a month for full time work.

The shift comes as global companies increasingly adopt AI in customer service to reduce costs and improve efficiency.

Laid Off Employees Were 'Blindsided'

Several affected workers said they were given only 24 hours' notice before being let go.

One former employee described the experience as 'blindsiding', explaining to Hotel Dive that around 70 people were dismissed in a single meeting.

The layoffs were said to be based on cost-saving measures rather than employee performance. Staff were reportedly informed they would continue receiving pay for 60 days and would be provided with a severance package.

Several former call-centre employees from Hyatt told View From The Wing they were laid off during a zoom call.

'I went from joining a zoom call with the director of my team, to being forced to turn on my camera, to being told I was laid off effective literally immediately,' one said.

Another said they found out in 'a 5 minute zoom to lay us off with literally NO advance warning or foreshadowing. They literally said your Hyatt email would deactivate in about an hour.'

Companies Cut Costs With AI And Offshoring

Hyatt is now believed to have no remaining US-based call centres, with remaining American employees working remotely. Shifting customer service operations to El Salvador and the Philippines has allowed the company to significantly cut labour costs.

While £291.70 per month may be higher than local wages in El Salvador, it is still a fraction of the salaries previously paid to US workers.

Customers have expressed frustration over the changes, citing language and cultural barriers as obstacles when communicating with offshore agents.

Users took to Reddit to voice their concerns. One wrote: 'Interacting with someone from another country presents countless barriers—language, culture—which make it a challenge to have small talk, let alone solve a problem.'

Another user added: 'The reason doesn't matter. If I'm calling, I want someone who understands the issue and can resolve it or explain why they can't. I don't want to spend 30 minutes overcoming cultural barriers because a company wanted to save $10 an hour.'

Hospitality Industry Turns to AI

Hotel chains, including Hilton, are also adopting AI to support customer service.

AI-powered chatbots are now being used to handle tasks such as making bookings, suggesting local restaurants, answering queries about hotel amenities, and more.

These bots offer a cheaper alternative to human staff and are available to customers 24/7.

Layoffs Come Following Senior Leadership Changes

These more recent layoffs occurred shortly after Hyatt announced changes to its senior leadership team last month.

The restructuring included changes to roles such as Chief Growth Officer, Group President, Europe, Africa and Middle East (EAME), and Head of Owner Relations.

Hyatt stated the changes were a part of their 'evolution towards a more brand-focused and agile enterprise.'