10,000 jobs lost as Starwood cuts back

Starwood has confirmed that it is to axe about 10,000 staff from its North American hotels, representing 23% of its workforce.

The hotel giant has already reduced staffing levels at its owned and managed properties by cutting employees' hours in line with drops in occupancy.

Managers and non-management staff are predicted to lose their jobs at its Westin, Sheraton, W, and St Regis hotels and other properties

Starwood, which has 11 hotels in New York, said occupancies at its North American properties fell to 30% after the terrorist attacks - down from 76% on 11 September.

UBS Warburg lodging analyst Keith Mills predicted that Starwood could be worst hit by the business downturn, as it owned and managed the most hotels in New York, where occupancies have fallen to as low as 40%.

However, he pointed out that three-quarters of the conferences and events that had been due to take place in the past few weeks had been rescheduled.

"The big unknown is how many people will attend," said Mills.