Morgans Hotel Group Eliminates Around One-Third of Corporate Staff
Morgans Hotel Group Co. eliminated at least one-third of its corporate staff Monday, a purging from a company that had indicated an intention to reduce costs, according to people close to the company.
Jason Kalisman, the company's acting chief executive officer and chairman, said, in a press statement last month, that the board was advancing a plan to "reduce costs and corporate overhead."
Morgans has gone through a tumultuous period in recent years, as some stakeholders and creditors, including private-equity investor Ronald Burkle, have pressured the CEO and the board to sell the company. Morgans has recently been taking steps to quell calls to find a buyer.
Despite a market cap of less than $300 million, Morgans remains a storied name in the hospitality industry. Famed hotelier Ian Schrager founded the company in the 1980s, and it is often credited with introducing the boutique hotel craze.