Key points
- The cuts come as part of a broader shift in the company’s approach to customer engagement, with many roles now being outsourced to overseas locations, particularly in El Salvador and the Philippines.
- The official reason for the layoffs, according to a Hyatt spokesperson, is to address “the evolving nature of guest inquiries and shifting business needs.
- In fact, concerns about subpar service in this elite program were reportedly brought up in late 2023 during a meeting with Hyatt’s Chief Commercial Officer, Mark Vondrasek, who pledged improvements that have yet to materialize.
Hotel News: Massive Layoffs Reshape Hyatt’s Customer Support Model
In a dramatic restructuring move that has sent shockwaves through the hospitality industry, Hyatt Hotels Corporation has slashed nearly 30 percent of its U.S.-based guest services and support staff. The cuts come as part of a broader shift in the company’s approach to customer engagement, with many roles now being outsourced to overseas locations, particularly in El Salvador and the Philippines.
Hyatt Hotels is cutting down its American Guest Services department
Image Credit: Hyatt Hotels
This Hotel News report reveals that while Hyatt has not disclosed the exact number of affected employees, internal sources and former staff estimate that hundreds of U.S. customer service agents and managers were terminated—many with less than 24 hours’ notice. Reports suggest that roughly 300 agents were dismissed last week alone, and only about 35 remain in the U.S. support network. Physical call centers in the United States are now virtually extinct, with most remaining personnel working remotely.
Offshoring and Automation Are Redefining Hotel Service
The official reason for the layoffs, according to a Hyatt spokesperson, is to address “the evolving nature of guest inquiries and shifting business needs.” The company insists that the decision was not performance-related and that affected employees will receive a 60-day pay period and severance packages. However, some former staff have described the abruptness of the layoff meetings—conducted via Zoom calls—as dehumanizing and traumatic.
While Hyatt has not explicitly stated whether artificial intelligence is replacing human jobs, the direction of its operations suggests increasing reliance on automation and offshore labor. Reports indicate that El Salvador is now home to Hyatt’s newest wave of customer service representatives, who earn about $400 per month for full-time work—significantly less than their American counterparts. The Philippines continues to host a larger team, part of Hyatt’s long-term cost-cutting strategy.
High-Touch Service Shrinks as Loyalty Program Faces Uncertainty
Interestingly, the My Hyatt Concierge team—dedicated to servicing top-tier “Globalist” loyalty members—has not been eliminated. However, insider reports suggest that many of their managers were also let go. In fact, concerns about subpar service in this elite program were reportedly brought up in late 2023 during a meeting with Hyatt’s Chief Commercial Officer, Mark Vondrasek, who pledged improvements that have yet to materialize.
For ordinary guests, the change is already noticeable. Customers have reported longer wait times, inconsistent call quality, and even humorous complaints like hearing roosters crowing during phone calls with offshore agents. While Hyatt’s online tools for tasks like reward point transfers and room upgrades have improved, many travelers still prefer the human touch—especially when resolving complex booking issues or complaints.
Hyatt Follows Marriott’s Path in Industry-Wide Trend
Hyatt’s move mirrors similar decisions by competitors like Marriott International, which laid off more than 800 corporate employees in November 2023. These shifts reflect a broader industry trend where digital platforms and AI are gradually replacing human agents. However, critics argue that the technology is not yet ready to fully replace personalized service, especially in luxury hospitality where brand reputation hinges on guest satisfaction.
The layoffs have sparked frustration and sadness among former employees, many of whom had been with the company for years. Social media has been filled with firsthand accounts of how workers were let go—some during brief Zoom calls where cameras were mandated to be turned on, followed by HR staff delivering severance details in a cold and impersonal manner.
One former staffer recounted being stunned into tears during the call, only to be met with silence from company representatives. “I was crying, humiliated and confused,” they wrote, “and all they said was ‘you’re going to need to take notes now.’”
A Stark Reminder of a Changing Industry
Hyatt’s decision to restructure its customer support is a stark reminder that even in high-end hospitality, technology and global labor markets are rapidly displacing traditional roles. While the company stands to benefit financially from this cost-cutting approach, it risks alienating loyal guests and damaging employee morale.
More importantly, it highlights a growing divide in the hospitality sector—between high-tech convenience and high-touch service. Whether or not Hyatt can maintain guest satisfaction with this new model remains to be seen, but the backlash among both customers and former staff suggests the road ahead may be bumpy. If quality declines further, Hyatt risks eroding the trust of guests who value human service over automation.
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