Macdonald Hotels could cut 80% of entire workforce

One of Scotland’s biggest hotel chains is considering cutting almost 80 per cent of its workforce, as the coronavirus pandemic continues to weigh on the hospitality industry.

Macdonald Hotels Group has started a company-wide consultation process, issuing notices to each of its 2299 employees and warning that up to 1800 roles are at risk of redundancy.

The hotel group, which has 31 hotels and resorts through Scotland and England, says it has seen a total collapse of income over the past three months since lockdown measures were introduced.

Group deputy chairman Gordon Fraser said: “We had really hoped to avoid this very unwelcome step, but with no realistic prospects of a return to anything like normal trading for the foreseeable future, we were simply left with no choice.

“Potentially, we are looking at around 1800 roles at risk, in all areas and at all levels of the business.

“There is no realistic prospect of us returning to anything approaching normality for the foreseeable future and, whilst its enormously regrettable, we simply must take these steps to ensure that we have a meaningful business when this situation ends, enabling us to bring back as many of our employees as possible.”

The company, which is headquarted in Bathgate, West Lothian, said it was losing £2m a month while its outlets were closed.

“Everyone understands that drastic steps had to be taken to halt coronavirus but the only way out of this for our industry is when the current restrictions are eased significantly, and people feel comfortable returning to hotels and restaurants,” said Fraser.

“Given the enormous importance of the tourism and hospitality sector for local economies the length and breadth of the UK, it is incumbent upon both the Westminster and Scottish Governments to do everything they can to support our industry.

“If they fail to do so, many long-standing and well-loved businesses will simply not survive, scarring some of our most fragile communities for years to come,” he added.

Macdonald Hotels and Resorts in Scotland:

Aberdeen