Makati Shangri-La will temporarily close beginning Feb. 1

Makati Shangri-La on Wednesday said it will temporarily close beginning February 1.

The Shangri-La Group announced the news in a statement, saying they will be reorganizing their workforce and operations to adapt to the "uncertain business environment" amid the pandemic.

"Throughout the unprecedented COVID-19 pandemic, our priority has been to preserve as many jobs as possible for our teams," a company spokesperson said in the statement.

In the last 10 months, as the Shangri-La Group had been trying to navigate through the losses brought about by the pandemic with multiple cost management initiatives "including salary reductions at management level, implementing shorter work weeks, hiring freeze and cuts in non-essential spending" all while providing assistance for rank and file employees to help them go through the struggles of the pandemic.

But despite their efforts, "the prolonged recovery timeline has resulted in increasing financial pressure on the company here in the Philippines," the statement read.

"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," it added.

They said it will be "part of the reorganization exercise."

In addition to the reorganization and the temporary closing of Makati Shangri-La, the group will also be "parting ways with a number of colleagues." 

"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," read the statement.

They are also "extending healthcare coverage and grocery support" until the end of 2021 to affected employees, as well as providing "career transition assistance" to help them bounce back.

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

"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," it added.

"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," the statement read.

Though they didn't specify when, the Shangri-La group said they will be reopening Makati Shangri-La at a later date.

Makati Shangri-La opened its doors in April 1993, less than a year after the Shangri-La Group debuted in the Philippines with the EDSA Shangri-La.

As early as last year, businesses including hotels, restaurants, bars, clubs, and shops have closed down due to the pandemic and its effects. — LA, GMA News