Wyndham Worldwide Corp., a major hospitality company which franchises Ramada, Days Inn and other hotels, said Monday it would restructure its time-share business and eliminate 4,000 jobs.
Wyndham said in a statement that it is scaling back the scope of its timeshare business as a way to cut its reliance on asset-backed securities. The company did not return a phone call seeking comment.
The job cuts represent about 12 percent of the company's overall work force. The pullback will result in charges of up to $75 million to be taken mainly in the fourth quarter.
Wyndham now expects sales in the timeshare business will be $1.2 billion in 2009, down from $2.0 billion in 2008, as it eliminates sales offices and marketing programs.
Wyndham also reiterated its fourth quarter and 2008 guidance. But based on the changes to its timeshare business and current economic conditions, the company says it now expects to earn revenue of $3.7 to $4.1 billion for 2009, down from previously announced expectations of $4.1 to $4.5 million for the year.
