MEMPHIS, Tenn. — The Peabody Hotel, a 151-year-old landmark in Memphis, is facing staff cuts, according to information filed with the state.
A letter to the Tennessee Department of Labor states the Peabody has filed notice about layoffs affecting 57 workers.
A hotel representative said in a statement that the affected employees had been furloughed since March. Those furloughs are now becoming permanent.
The statement went on to say, “… we now know business levels won’t be returning to pre-COVID levels for some time. This public record document simply a formality that reflects the legal process.”
The COVID-19 pandemic has hit the tourism industry hard, local leaders said.
“I think all of the hotels are still struggling and not at full capacity of employees,” said Jennifer Oswalt, president and CEO of the Downtown Memphis Commission. “And they’ll continue report when they have to legally, or when trying to get assistance from the federal government or state.”
The Peabody Hotel was named the Best Historic Hotel in America this year, the third year in a row, by USA Today readers.
Kevin Kane, president and CEO of Memphis Tourism, said the local industry is bracing for a potential downturn in the fourth quarter, which could mean further job losses.
But the industry hopes $2 million in Cares Act money will be used to promote Memphis and attract tourists.
“We’re going to spend it aggressively over the next few months in a variety of categories to help push demand to Memphis and the state of Tennessee,” Kane said.
