Macdonald Hotels warns 80 per cent layoffs

Eloise Hanson Eloise Hanson Uploaded 12 June 2020

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UK: Macdonald Hotels Group has announced that 1,800 jobs are at risk as income plummets across its 31 hotels and resorts in Scotland and England.

Consultation notices have been issued to all of its 2,299 employees.

The group has said that the government’s furlough scheme has helped the business, though the current situation was “unsustainable.”

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 1,800 roles at risk, in all areas and at all levels of the business.

"The government's furlough scheme has helped to a degree but our essential operating costs, insurance and some wages are still having to be paid, meaning our monthly cash outgoings are still running at £2m while we are forced to remain closed. Even after cutting all non-essential spending and with senior management and our remaining staff accepting reduced salaries, the current situation is simply unsustainable.”

The announcement follows news that Scotland’s tourism sector is preparing for a 15 July reopening.

Tourism Secretary Fergus Ewing said that the planned date was conditional on the rate of coronavirus infections continuing to drop in Scotland, with businesses including pubs, hotels and restaurants potentially restarting.

Of the 31 properties that Macdonald Hotels’ operate and manage, 11 are based in Scotland.

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