Makati Shangri-La temporarily closes beginning February 1

Makati Shangri-La had just announced that due to the economic impact of the COVID-19 pandemic, they will be temporarily closing their doors beginning February 1 and will also be unfortunately laying off workers.

Makati Shangri-La façade / Source: Makati Shangri-La (FB)

This “extremely difficult” decision comes after Makati Shangri-La tried to soften the blow of the pandemic through several cost-cutting measures, including “salary reductions at management level, implementing shorter work weeks, hiring freeze and cuts in non-essential spending.”

The Shangri-La Group said in a statement, “For the past 10 months, we have provided assistance for our rank and file to help them through these challenging times.

“Despite our best efforts, the prolonged recovery timeline has resulted in increasing financial pressure on the company here in the Philippines.

“Owing to the 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 reorganise our workforce and operations in the Philippines as we continue to navigate an uncertain business environment."

A part of Makati Shangri-La's reorganization efforts is sadly having to part ways with a number of their colleagues.

Nevertheless, the management will still be providing support for the workers who will be laid off.

Part of their official statement reads, "Every effort is being made to support all our affected colleagues through this transition, including providing a fair compensation package that is higher than local statutory guidelines.”

Aside from compensation packages, Makati Shangri-La will also be extending healthcare coverage and grocery support until the end of 2021 for all the furloughed employees.

Plus, they will be giving “career transition assistance” to help the affected workers bounce back.

In the statement, the Shangri-La Group expressed their gratitude for the support they've received for almost three decades.

"For close to 30 years, the Shangri-La Group has enjoyed strong support here in the Philippines.

"We are grateful for this and would like to assure everyone we remain deeply committed to our presence here in the market, and to the communities we are a part of.”

They also expressed their desire to reopen as soon as the circumstances allow.

“We continue to vigilantly monitor local and global developments and look forward to reopening Makati Shangri-La, Manila at a later date when business conditions have improved.”

Makati Shangri-La opened in April 1993, less than a year after the Shangri-La group's first hotel in the Philippines, EDSA Shangri-La, first opened its doors.

Aside from Makati Shangri-La, other hotels have also succumbed to the economic consequences of the pandemic, as travel bans and quarantine restrictions were implemented and have greatly affected the travel and hospitality industry.

Marco Polo Davao announced its closure back in May 2020, while Victoria Court shut down some of their branches in June 2020.

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Check out the gallery below of some of the businesses that shut down amid the pandemic.