Marriott International, Inc. (NASDAQ:MAR) and Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) merger has resulted to 56 people being laid off from the Scottsdale office at 15147 N. Scottsdale Road H210.
The laying off process was expected
The representatives of the companies confirmed that the workers had been notified before the merger took place. The news therefore did not come as a surprise to the employees. The merger proceedings closed down on September after going through approval by shareholders. It was worth $12.6 billion. The representative of the hotel stated that the company gave notices to the workers in order to ensure compliance regulations were adhered to. He added that many of the laid off associates have accepted new positions in the new company and the executives will continue working closely with them throughout the merger process.
The birth of the largest chain of hotels
Marriot is a registered company with NASDAQ stock under the ticker code ‘MAR’. Its merger with Starwood has resulted to the largest chain of hotel companies in the world. The company had under its control more than 1.1 million rooms and over 5,500 hotels in more than 110 countries all over the world. David Marr the senior vice president and global brand leader at Sheraton Hotels & Resorts stated that in Phoenix area there is a combination of around 25 Starwood and Marriot hotels and in Arizona there are about 100 hotels.
Overlapping duties after the merger
Starwood had about 700 employees in its headquarters in Stanford. Arne Sorenson the CEO in Marriot stated that the company hopes to maintain some of the workers in Stanford and in New York where Starwood had its innovation center and digital design studio commonly known as Starlab. Starlab could lead to an overlap with Marriot’s already existing functions. Marriot however has a digital design and production studio going by the name M Live. M Live has satellite studios in Asia, Latin America and Europe. The studios are located in Bethesda.
Starwood had acquired loans from the state with a promise to provide employment for people in Stanford. If Marriot lays off more than 400 by 2019, the company will have to pay back all the state loans from 2009-2014 as well as $1.7 million taxes that were avoided.