Wyndham to Fire or Lay Off 1,600 Workers
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Wyndham International Inc. said it will fire or layoff about 1,600 employees, or about 5% of its work force, becoming the latest hotel company to cut back amid a drop in travel after last month’s terrorist attacks.
Wyndham, based in Dallas, also said its lenders waived certain covenants of its bank debt for the third and fourth quarters. As part of the waiver, Wyndham will delay the cash dividend on its preferred stock. The company owns or manages 233 hotels. Wyndham wouldn’t elaborate on the debt covenants.
Hotel occupancies fell after the Sept. 11 attacks and haven’t yet recovered, the company said.
Wyndham said that about 20% of its employees are working fewer hours to cut costs, until occupancies return to normal.
Wyndham shares, which have fallen 70% this year, rose 11 cents to close at 64 cents on the NSYE.
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