Due to the crisis caused by the COVID-19 pandemic, Makati Shangri-La will be temporarily closed from February 1.
In a statement on Wednesday, Shangri-La Group said they needed to adjust their operations and number of staff “to adapt to the uncertain business environment” as a result of the pandemic.
“Throughout the unprecedented COVID-19 pandemic, our priority has been to preserve as many jobs as possible for our teams,” said the company spokesperson.
Over the past 10 months, Shangri-La Group has been trying to find ways to reduce operating losses such as cost reduction “including salary reductions and management level, implementing shorter work weeks, hiring freeze and cuts in non-essential spending.”
They allegedly did this while providing support to their rank and file employees to overcome the crisis.
However, “the prolonged recovery timeline has resulted in increasing financial pressure on the company here in the Philippines,” the statement said.
“We, unfortunately, must now make the extremely difficult decision to reorganise our workforce and operations in the Philippines as we continue to navigate an uncertain business environment,” the company added.
The reorganization will include the reduction of their co-workers.
Makati Shangri-La temporarily closed starting Feb. 1
“Every effort is being made to support all our affected colleagues through this transition, including providing a fair compensation package that is higher than local statutory guidelines,” the statement said.
Healthcare coverage will also continue as well as “grocery support” until the end of 2021 for affected employees. They will also provide “career transition assistance.”
“We continue to vigilantly monitor local and global developments and look forward to reopening Makati Shangri-La, Manila at a later date when business conditions have improved,” the company said.
Makati Shangri opened in April 1993, a year after the Shangri-La Group started in the country and founded EDSA Shangri-La.
Makati Shangri-La, Manila is a 5-star luxury hotel located in Makati and one of the three hotels managed by Shangri-La Hotels and Resorts in Metro Manila, Philippines.
Shangri-La is known for offering some of the largest rooms available in many destinations. There is a full range of accommodation options, ranging from deluxe rooms to luxurious suites.