Royal Caribbean Cruises sheds 26% of U.S. workers as coronavirus cancellations continue
Miami-based Royal Caribbean Cruises Ltd. is reducing its U.S. workforce by 26%, with more than half of those workers in South Florida, the cruise line confirmed.
“Earlier today, we told our employees the difficult news that we were laying off or furloughing approximately 26 percent of our more than 5,000 coworkers in the US,” the company said in a written statement. “We earlier announced the early conclusion of many crew contracts. The circumstances of the pandemic made this action unavoidable, and it hurts to part ways with so many good and talented people.”
Most of the reductions are permanent layoffs, though some are 90-day furloughs with paid benefits.
The coronavirus crisis has docked the cruise industry after outbreaks occurred on several ships. On March 14, the U.S. Centers for Disease Control and Prevention announced a 30-day “no-sail order” for all cruise lines; that order was extended on April 9 for as much as 100 days. Royal Caribbean has so far canceled cruises through May 11.
The world’s second-largest cruise company has about 4,000 employees in South Florida. The bulk of the others work in call centers in Wichita, Kansas, and Springfield, Oregon.
Among those leaving is Larry Pimentel, CEO of Azamara Club Cruises and a highly respected industry innovator. In a letter that went out Wednesday to employees, Pimentel said he was stepping aside voluntarily to lessen the impact on others, and expressed confidence in the brand’s leadership.
Last year Royal Caribbean began construction on a larger headquarter office at PortMiami to accommodate a growing local workforce. The company put the $300 million project, which was designed to look like a ship, on hold in March.
The action follows a March 11 announcement that the company was shedding 1,000 contractors whose projects were being terminated.
Royal Caribbean Cruises Ltd. owns Royal Caribbean International, Celebrity Cruises and Azamara, and is majority owner of Silversea Cruises. It also holds a significant stake in European brands TUI Cruises and Pullmantur Cruises.
The company reported a profit of $1.9 billion in 2019.
The cruise industry was left out of the federal coronavirus stimulus bill, signed into law at the end of March, because cruise companies are incorporated overseas and claim exemption from U.S. income taxes. Royal Caribbean is incorporated in Liberia and registers its ships in the Bahamas and Malta.
This story was originally published April 15, 2020 at 9:00 AM.
