According to the Austrian press, Casinos Austria’s supervisory board has agreed to a restructuring plan for the business that will result in 500 staff redundancies. The reorganisation, says the board, will save 1,200 other jobs.
Other major changes will see company pensions cut and around 25 per cent of salaries reduced.
New majority owner Sazka, is reported as saying through CEO Robert Chvatal that the changes are “about saving a company that is in an extremely difficult situation due to its structure and the changed world. We do not want to sell casinos; we want to make them fit for the future.”
In a statement, general director Bettina Glatz-Kremsner said: “The supervisory board took an important step to make Casinos Austria AG fit for the future by 2022. The implementation of the refit package of measures presented to us as the board of directors will be the largest reorganisation in the company’s history. It will secure Casinos Austria’s position as THE gaming provider in Austria in the long term.”
Glatz-Kremsner added: “Like many other companies, Casinos Austria was hard hit by the coronavirus, which made it necessary for the board, the supervisory board and the owners to act quickly and responsibly. Especially because the expected consequences from the virus will also pose great difficulties for us in the near future. But even before the virus there was a clear need for action due to the changed framework conditions in our casinos and also at the headquarters and not least because of the smoking ban.”
The plan is designed to preserve the profitability of the land-based casino business in Austria, save a total of over €40m by reducing material and personnel costs, increase efficiency, strategically realign casino locations, reduce the number of employees and salary costs.