More than 200 workers are to be laid off Dec. 1 when Marriott International closes a food distribution center in Savage, company officials confirmed yesterday.
The facility is being shut as part of Marriott's plan, announced several months ago, to get out of the food distribution business.
The 211 employees in Savage were notified of the layoffs Oct. 1, said Tom Marder, a company spokesman. He said the workers would be eligible for severance pay, subsidized health and dental insurance and outplacement services.
Marder said Marriott is still hoping to sell the facility, ideally to someone who will retain the work force. He said it's also possible that some will be placed in other Marriott jobs, but noted, "Obviously, there's been a downturn in travel and hospitality, and that's affected the ability of hotels to expand staff."
Richard W. Story, chief executive of the Howard County Economic Development Authority, said his agency has fielded "a couple of inquiries" about the facility, which he said has about 170,000 square feet of space, including a large refrigerated area. In general, Story said, such facilities are fully occupied in the area, with food vendors "clustering" close to the 5 million-square-foot Maryland Food Center in Jessup.
The prevalence of food service companies in the area, he said, means the Marriott workers should be able to find jobs. He said the county's Office of Employment and Training was attempting to assist the workers in finding new positions.
In all, Marriott had 13 distribution centers nationally - none in Maryland besides the one in Savage - employing about 1,400, according to Marder. It has sold two since announcing its decision to get out of the business.
The centers sold food to Marriott hotels and to other customers, such as restaurant chains.
According to Marder, the distribution division contributed $1.6 billion of Marriott International's more than $10 billion in revenue last year.
About three-quarters of the company's revenue comes from its hotel franchising and management business, with the remainder from operating senior-living facilities. Marriott has also announced it is considering strategic alternatives for its senior housing division, which operates 110 facilities.
The distribution division had $1 million in operating losses and $5 million in restructuring and other charges last year, and management decided to shut it down.
Paul Keung, an analyst for CIBC World Markets, wrote in a research report last month that "operating losses in this segment have widened in recent quarters, largely due to a significant loss of higher-margin business."