After nearly 30 years of operation, Makati Shangri-La Hotel in Manila will suspend operations beginning February 1, and let go of a number of staff, as part of a reorganization exercise due to the pandemic’s financial impact.

In a statement, a Shangri-La Group spokesperson said that “the prolonged recovery timeline has resulted in increasing financial pressure on the company here in the Philippines”.

“Owing to continued low business levels and having considered all viable options over weeks of consideration and deliberation, we, unfortunately, must now make the extremely difficult decision to reorganize our workforce and operations in the Philippines as we continue to navigate an uncertain business environment,” read the statement.

Since the Covid-19 outbreak, the hospitality group has implemented several cost-cutting measures, including salary reductions at the management level, shorter workweeks, hiring freeze, and cuts in non-essential spending.

All affected employees will receive a fair compensation package that is “higher than local statutory guidelines”, as well as healthcare coverage and grocery support until the end of this year.

Shangri-La said that it would reopen Makati Shangri-La “at a later date when business conditions have improved”.