02/25/2009 (7:48 pm)

Hilton Hotels Corp. preparing for layoffs

Filed under: legal |

Industry sources say Hilton Hotels Corp. is preparing for numerous layoffs, possibly some in its IT department which is based in Memphis.

Earlier this month, Hilton’s CIO, Tim Harvey, who is in charge of the company’s IT department, resigned effective March 31. Harvey will stay on for a year as a consultant, a Hilton spokesman confirmed late Tuesday.

Industry sources say layoffs could be communicated to employees as soon as Thursday, but how many people would be affected is unknown. Hilton employs around 1,100 people in Memphis.

When contacted about pending layoffs, Hilton’s communications department issued the following statement:

Hilton Hotels Corporation, as previously stated, is undergoing a corporate transformation short term personal loans. Any changes within the organization will be communicated directly to our team members at the appropriate time.”

Hilton announced plans on Jan. 21 to move its headquarters from Beverly Hills, Calif., to Washington, D.C., in the third quarter of 2009. When the move is complete, the company will relocate administrative functions of its Hilton Garden Inn brand to Memphis. The Embassy Suites, Hampton Inn & Suites and Homewood Suites brands are already headquartered in Memphis. The recently launched Home2Suites brand will also be located in Memphis.

When the move was announced, industry sources speculated the move could increase Hilton’s employment base of 1,100 in Memphis to about 1,500 people.

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