Carnival Corp. Slashes Jobs And Pay Amid COVID-19 Pandemic

Cruise Week

Carnival Corp. permanently laid off 27% of its Florida employees and furloughed an additional 18% yesterday. While numbers weren't shared, sizeable layoffs also occurred in California and the state of Washington.

Yesterday the company announced that to further strengthen its liquidity, the cruise line will perform "a combination of layoffs, furloughs, reduced work weeks and salary reductions across the company, including senior management."

"The actions in some way affect every shoreside employee in Carnival Corporation and its brands and involve a wide range of professional and skilled employment functions. Job eliminations are permanent. The furlough notice is six months, and we have the ability to potentially bring people back from furlough ahead of that time," Carnival said in a statement. 

The layoffs and furloughs in the U.S. are taking place at corporate and regional headquarters locations in Florida, California and Washington state. 

Carnival would not discuss details on how many employees are affected globally except to say out of a workforce of roughly 3,000 employees, 820 positions are being eliminated in Florida and 537 placed on furlough.

"While these moves will contribute hundreds of millions of dollars in cash conservation on an annualized basis, we are saddened by these decisions and are sorry that we must take these actions. Our employees are the foundation of our company and it is unfortunate that many talented people are being impacted, through no fault of their own," the statement continued.

Princess, HAL & Seabourn

Princess, Holland America Line, and Seabourn released similar statements to that of Carnival, noting that they informed shoreside employees of staff reductions as a result of the COVID-19 impact on the global cruise industry.

Holland America Line reports that approximately 50% of the workforce in Washington state (HAL and Seabourn) has been laid off or furloughed, but all employees are impacted either by reduced hours or a reduction in compensation.

While official numbers have not been disclosed, Cruise Week says several sources report that close to 2,000 employees have been laid off.

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