Australia’s largest gambling company Tabcorp has furloughed more than 700 employees until June 30 to mitigate the impact of coronavirus on its business. All the Australian casinos have been closed since March 22 due to the coronavirus pandemic. All the major sports events have also been cancelled in this crisis.
New and obscure sport betting options like the Belarusian Premier League and Tajikstan men’s basketball have been unable to compensate for the loss of revenue that would normally come from the world’s most popular competitions in Australia and worldwide.
This state of affairs has led the group to temporarily stand down more than 700 employees to 30 June 2020 in businesses where there is no work due to coronavirus-related closures. A further 160 technology contractors have also been let go, representing a cut of 40%.
Business-as-usual expenditure for the current half is expected to be down by a quarter at around $120 million, and Tabcorp has expanded its banking facilities through an additional $226 million short-term facility payable in mid-2021.
David Attenborough, MD and CEO of Tabcorp, has also taken a 20% fixed remuneration pay cut until the end of the financial year.
“This continues to be a very challenging time for our people, businesses, partners and the community. We are committed to working proactively and collaboratively with all our stakeholders so that we can collectively emerge from the Covid-19 period as strongly as possible,” Attenborough said.
Meanwhile, chairman and non-executive director fees have been reduced by 10%, following on from an earlier 10% cut in September last year.